Victoria Oil & Gas announced on Monday that’s its wholly owned subsidiary Gaz du Cameroun S.A has signed a contract with grid power producer, Eneo Cameroon S.A. Gas supply to the Logbaba 30MW Power Station will be resumed. Shares in the company jumped over 50% following the announcement.

The three-year contact was signed on the 21 December 2018. Under the agreement, gas will be provided to ENEO’s 30MW Logababa Power Station.

Victoria Oil & Gas is a Cameroon based gas and condensate producer and distributor.

Victoria Oil & Gas commented on the announcement:

“We are delighted that GDC has renewed its contract with ENEO and has quickly resumed gas supply to the Logbaba Power Station in Douala. Whilst the situation in 2018 has been a challenging one for all involved, the management team remained confident that a resolution would be reached. We wish to thank the Government of Cameroon, Ministry of Water & Energy, Eneo Cameroon S.A, Société National de Hydrocarbons (SNH) and His Excellency the President for entrusting GDC and Altaaqa with such an important project for the Republic of Cameroon and its people.”

“The new contract provides GDC with a stable three-year deal that immediately doubles daily average gas sales, whilst also offering a platform for further opportunities with ENEO, notably at their 20 MW Bassa Power Station in Douala.”

With the resumption of the ENEO contract, the Company is in a strong position for growth during 2019. GDC ’s significant reserve base and position as the only onshore gas producer in Cameroon provides a unique opportunity to produce more power in the region for the benefit of both the Company, and the people of Cameroon. The management team has worked hard over the last 12 months to successfully diversify the product base and increase the number of clients and will continue to focus on this initiative.”

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At 08:58 GMT today, shares in Victoria Oil & Gas plc (LON:VOG) jumped 51.28%.