Interim Results to 30 June 2021

Victoria Oil & Gas Plc

Unaudited Interim Condensed Consolidated Financial Statements

For the six months to 30 June 2021

CHAIRMAN'S LETTER

Dear Shareholder,

On behalf of the Board, I set out below our unaudited interim results for the six months to 30 June 2021 ("H1 21" or "reporting period"), an operational update for Q3 21 and commentary on the Company's progress.

Victoria Oil & Gas Plc ("VOG", the "Company" or the "Group") currently generates revenue by reliably and safely supplying gas through its 57% participating interest in the Logbaba Project in Douala, Cameroon, which is held by its 100% owned subsidiary Gaz du Cameroun S.A. ("GDC").

Logbaba Operations Update

The sales figures from the Logbaba Project in Cameroon are as follows:

The table refers to gross Logbaba Project gas sales, unless specified as attributable to GDC representing its 57% interest in the project.

Gas was produced and delivered to customers in Douala on an uninterrupted basis during the reporting period without any significant safety incidents, underlining our commitment to operate in a safe and environmentally friendly manner. Our customers continue to realise the benefits of natural gas, by far the cleanest burning fossil fuel, having converted from significantly higher priced diesel or heavy fuel oil and subsequently reducing their harmful emissions in the Douala area.

Post period, Q3 2021 production update:

Quarterly gross and net gas and condensate sales at Logbaba are as follows (amounts in bold are net gas and condensate sales attributable to GDC (57%)):

Industrial Customers

Our focus continues to be to improve our customer diversification post the termination of the ENEO Gas Sales Agreement ("GSA"). The focus on industrial customer growth around the existing pipeline continues to positively impact our results with an 8% increase in thermal and industrial gas consumption compared to H1 20, reaching 952 MMscf gross gas sales during the reporting period (H1 20; 881 MMscf). Attributable revenue for thermal and industrial customers in the reporting period was US$6.8 million compared to US$6.7 million in H1 20.

2

Well La-108 Remediation update

Well La-108 was brought online on 15 February 2020. The well was initially producing on its own and then in combination with another well so that La-108 could be kept at a constant rate and to ensure that operations could be managed given contrasting wellhead pressures. The well started producing significantly more water than previous wells, and above what might be expected as just water of condensation. The level of water production (up to 200 bbl/d) was managed relatively easily by the operations team.

Together with the volumes produced during testing last year, the well has produced a cumulative 0.467 Bcf to date (over 111 days), and it had been supplying the majority of the gas produced by GDC whilst it was on production. La-108 was shut in on 6 June, the other wells meeting the needs of our customers since then, enabling GDC to carry out a longer-term pressure build up (PBU), which will allow us to learn more about the reservoir system that it has been producing from.

We have unanimous partner approval to add perforations to the upper sands in La-108, which we expect to more than double net pay. Such is the pressure difference between the top and bottom of the reservoir that perforating must be done in two stages, as was done on other wells. Adding perforations should increase the well's productivity, reduce the overall water cut and enable access to all of the well's connected gas volumes.

Matanda Subsurface

In late 2020, the Minister of Mines, Industry and Technological Development granted a one-year extension to our licence to 17 December 2021.

A team arrived in country to start the Environmental and Social Impact Assessment ("ESIA") in March 2020 but were unfortunately repatriated out of Cameroon due to Covid-19 and in total some six months were lost before they could return and complete the work. The ESIA was submitted in March 2021 and GDC was pleased to announce that the ESIA Report on its planned activities on the Matanda Block was approved in early June 2021. The certificate of environmental conformity, as issued by an inter-ministerial committee between the Ministry of Environment, Protection of Nature and Sustainable Development ("MINEPDED") and the Ministry of Mines, Industry and Technological Development ("MINIMIDT") permits the progress of drilling activities subject to the implementation of an approved Environment and Social Management Plan ("ESMP").

Well planning and the procurement of long lead items have progressed and civil engineering works are due to commence in the 4th quarter. The search for an appropriate drilling rig is well underway, and a short list of candidate rigs has been drawn up. Note that the total drilled depth of a Matanda well to test Tertiary-aged prospects will be significantly shallower than Logbaba wells which produce from older and deeper, Cretaceous-aged reservoirs. The total depth of the first well is likely to approximately 1,250m (Logbaba wells can reach over 3,000m).

In order to share the capital and risk of drilling the commitment well, the Company is seeking an industry partner via a farmout process which continues post-period.

ENEO

On 16 April 2021, GDC signed a settlement agreement with ENEO for the payment of the gross amount to GDC of approximately 2.74 billion FCFA (Central African CFA franc) (circa US$5 million). This settlement relates to the Take-or-Pay invoices for October, November and December 2019 plus associated interest. During this period for which Take-or-Pay invoices were issued, gas was not being supplied to ENEO because there was no demand (the generating equipment at ENEO's site had been turned off).

All of the amounts invoiced to Eneo were fully provided for in the Annual Accounts for the year ended 31 December 2019 and the Interim Statement for the period to 30 June 2020.

GDC received a gross payment of US$5.1 million from ENEO in full and final settlement in early June 2021.

RSM Arbitration

As announced on 29 September 2021, VOG and RSM entered into a settlement agreement which has enabled the parties to dismiss the UNCITRAL hearing which was due to commence at the end of September 2021. The settlement involves the agreement of certain accounting policies and procedures, the clarification of certain decision-making processes, and an agreement on the amount of monies payable to RSM in line with their existing contractual arrangements from existing cash resources in country. This hearing and the inevitable follow-up would have likely cost the Company a substantial amount in legal costs alone, whilst the amounts under dispute were material as noted in the Annual Accounts for the year ended 31 December 2020.

3

The settlement of the UNCITRAL arbitration is without prejudice to all claims pending in the ICC arbitration Case No. 23991/MK. The ICC arbitration hearing took place in April of this year, and the ICC has yet to issue its Award.

Well La-108 Insurance claim

The Company continues to pursue its meritorious insurance claim with respect to the well control incident in well La-108 in March, 2017.

West Medvezhye

Our West Medvezhye asset in Russia continues to attract attention, helped by elevated oil prices (compared to 2020). We have a number of interested parties conducting due diligence on the asset.

Environmental Social and Governance (ESG)

The spread of the Covid-19 virus in Cameroon has been relatively contained in comparison to other countries. A crisis management team was established at GDC in Cameroon in accordance with the corporate management plan to manage the company's activities and coordinate with the State authorities. Whilst the Company has experienced a number of logistical issues in relation to quarantining and travel constraints, which have caused delays to a number of workstreams, the safety of employees and consultants was and continues to be paramount to the business. A small number of our customers experienced supply and operational constraints because of the pandemic, but our gas supply remains uninterrupted. Our local community platform meetings had to be suspended for a period, but these have now resumed with the necessary measures in place to ensure safety of attendees.

The Company continued evolving CSR systems into an ESG initiative during the period to ensure that the Company's Environmental, Social and Governance policies and practices are integrated into all aspects of the organisation, ensuring Board oversight and improved communications to its stakeholders.

A key focus during the period was the completion and approval of the ESIA process on the Matanda Project. The liaison with the relevant stakeholders in this regard is ongoing. Community support has continued during the period with a number of Logbaba and Ndogpassi based projects being supported. Materially, post period, GDC has strengthened its relationship with the Logbaba District Hospital by supporting financially the creation of a new emergency unit.

Final Word

We are pleased with the resilience that our Cameroon business has shown through recent times and the positive results from our remediation of well La-108. It was an important step in bringing La-108 onto production and we look forward to the results of the pressure build-up exercise and subsequent perforating programme. The work programme on Matanda has shown significant prospectivity and there has been significant operational progress in 2021 including the approval of the ESIA Report, the well planning and tendering for long lead items. On a final note we are very pleased to announce that in June, GDC passed one million man-hours without a single Lost Time incident.

Roger Kennedy

Chairman

31 October 2021

4

Financial Review

The interim report for the six-month period ended 30 June 2021 is compared to the six month period ended 30 June 2020 ("prior period" or "H1 20") as required by International Financial Reporting Standards ("IFRS").

Performance

The Group's revenue for the reporting period was US$7.1 million, US$5.5 million lower than the prior period (H1 20 US$12.6 million).

The revenue for the six month period to 30 June 2020 included approximately US$5.9 million related to ENEO.As a result of the ENEO settlement, this revenue was reversed in the Annual Accounts to 31 December 2020. Stripping out this ENEO revenue, then the attributable revenue for thermal and industrial customers in that period was US$6.7 million compared to US$6.8 million in the reporting period. Condensate sales were US$0.3 million in the reporting period compared to US$0.1 million in the comparable period.

Revenue is currently derived entirely from the Logbaba Project in Cameroon. Gas is sold to customers for thermal energy production and electricity generation, with revenue also generated from the sale of condensate, a by-product from gas production and processing.

Administrative expenses in the reporting period were US$1.6m higher than the prior period, primarily due to the significant legal expenses in relation to the RSM arbitrations.

Adjusted EBITDA, a non-IFRS measure which excludes depreciation and impairment charges from operating profit prior to financing charges and tax, reflects a loss of US$0.4 million (H1 20: US$0.8 million).

The loss after taxation of the Group for the six months to 30 June 2021, which incorporates the items mentioned above, amounted to US$2.3 million (H1 20: US$3.7 million). Loss per share for the six months to 30 June 2021 was 0.89 cents (H1 20: 1.45 cents).

5

This is an excerpt of the original content. To continue reading it, access the original document here.