Victoria Oil & Gas PLC Gas Plant Purchase from Expro, Cameroon (2857O)
May 27 2015 - 2:00AM
UK Regulatory
TIDMVOG
RNS Number : 2857O
Victoria Oil & Gas PLC
27 May 2015
Victoria Oil & Gas Plc
("VOG" or "the Company")
Gas Plant Purchase from Expro, Cameroon
Victoria Oil & Gas Plc today announces that its 100% owned
subsidiary, Gaz du Cameroun S.A. ("GDC"), has made payment in full
for the purchase of the Logbaba gas processing plant ("the Plant")
from Expro Worldwide BV ("Expro"). The Plant currently processes
gas extracted from the GDC wells, producing condensate which is
sold to a local refinery and clean natural gas which is distributed
to customers through the 33km pipeline network in Douala,
Cameroon.
The Plant has been purchased from Expro for US$2.578m, using
cash generated from GDC operations, and the Board believes that
this purchase will deliver significant cost savings. GDC is
evaluating proposals for a long term contract for the operation and
maintenance of the Plant with specialist service companies,
including Expro.
Kevin Foo, Executive Chairman of GDC, said: "The purchase of the
Logbaba plant is a key milestone for GDC, bringing with it
significant cost savings which will enable us to continue to grow
the business and increase shareholder value. We are now evaluating
options for the Plant expansion and look forward to providing an
update in due course."
For further information, please visit www.victoriaoilandgas.com
or contact:
Victoria Oil & Gas Plc
Kevin Foo / Laurence Read Tel: +44 (0) 20 7921 8820
Numis Securities
John Prior / Ben Stoop Tel: +44 (0) 207 260 1000
Strand Hanson Limited
Angela Hallett / Stuart Faulkner Tel: +44 (0) 20 7409 3494
Bell Pottinger
Daniel Thole / Charles Stewart / Joanna Boon Tel: +44 (0) 20 3
772 2499
Notes to Editors
About Victoria Oil & Gas Plc
Victoria Oil & Gas (VOG.L) is a gas utility company with
operations in the industrial port city of Douala in Cameroon, which
is the business hub to Central Africa.
The Company's subsidiary, Gaz du Cameroun S.A. ("GDC"), supplies
cost effective, clean and reliable gas to industries in the Douala
region from its onshore Logbaba Gas Project. Industrial customers
are primarily supplied with gas through a 32.9km pipeline network
built by GDC in Douala.
Through thermal gas supply and provision of energy to the Douala
grid, under the ENEO terms of agreement, GDC is helping to ensure
that the Cameroon economy is underpinned with stable power. By
developing a full integrated gas supply network, connected to wells
located within the city itself, GDC has established a new range of
energy product types within Douala that are cost effective,
reliable, safe and cleaner than liquid fuel alternatives.
The Company generates cash flow from the Logbaba Project which
is 60% owned and managed by GDC, with RSM Production Corporation,
an affiliate of Grynberg Petroleum Company of Denver, Colorado
holding a 40% participating interest.
VOG also holds 100% of the West Medvezhye oil and gas
exploration project near Nadym, Russia. The field has C1 plus C2
reserves of 14.4mmboe (under the Russian resource classification
system, analogous to proven and probable reserves under Western
conventions) in addition to best estimate prospective resources of
1.4bboe.
Cameroon Energy Market
Cameroon is a stable African country that is host to a
developing economy serving most of Central Africa with goods and
services. A power deficit remains a major hindrance to Cameroon's
economic expansion. The power grid is reliant on hydroelectric dams
to supply 75% of power and the shortfall is made up from heavy fuel
oil and gas. Hydroelectric dams are highly seasonal, with stream
rates significantly varying from 6,000m(3) per second in the wet
season to 50m(3) per second in the dry season. As with many hydro
electrical systems transmission loss is also a constant issue when
balancing power loads across distances to different consuming
regions. The port-city of Douala is the major industrial zone
within Cameroon and it requires high levels of consistently
delivered grid power all year round. Currently Cameroon's energy
demand is growing at 7% annually and gas is seen as a key element
to Cameroons national energy strategy.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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