Victoria Oil & Gas PLC Logbaba Power Station Online & Production Increase (0535L)
April 23 2015 - 2:01AM
UK Regulatory
TIDMVOG
RNS Number : 0535L
Victoria Oil & Gas PLC
23 April 2015
RNS Number:
Victoria Oil & Gas PLC (AIM:VOG)
23 April 2015
Victoria Oil & Gas Plc
("VOG" or "the Company")
ENEO's Logbaba Power Station Online and Production Increase
Highlights
-- Logbaba online and delivering 30MW to grid
-- Bassa and Logbaba now delivering a total of 50MW to grid
-- Average daily gas production since 50MW online is 14.5mmscf/d
Victoria Oil & Gas Plc announces that its 100% owned
subsidiary, Gaz du Cameroun S.A. ("GDC"), has commenced supply of
gas to the Logbaba power station following successful installation
of all gas fired electricity generators by Altaaqa Global
("Altaaqa"). 30MW of power is now being generated at Logbaba as per
the contract with ENEO Cameroun S.A. ("ENEO") announced on 29
December 2014.
The supply from Logbaba, coupled with the previously announced
20MW to Bassa power station, meets the 50 MW target and GDC's
responsibilities to deliver gas to both stations has now been met.
This triggers take or pay conditions in the contract with ENEO. The
total project was delivered in less than four months since the
contract was signed.
Average gas production since the 50MW has been online is
14.5mmscf/d with a daily peak of 15.3mmscf/d.
Kevin Foo, Executive Chairman, said: "From contract signing to
delivery of 50MW to the grid in less than four months is an
outstanding example of how the project partners ENEO, Altaaqa and
GDC have made this happen. Average production levels have risen to
14.5mmscf/d, three times higher than levels at the end of 2014,
which underlines this transformational agreement for VOG and give
us confidence GDC can meet its average production target of
10.4mmscf/d for calendar year 2015."
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
Tavistock Communications
Jos Simson / Edward Portman/ Nuala Gallagher Tel: +44 (0) 20
7920 3150
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 31.3km pipeline network
built by GDC in Douala. GDC products currently include thermal gas,
gas condensate and gas for electricity generation. GDC gas is
attractive to customers due to its reliability, price
competitiveness, low hydrocarbon emissions (compared to Heavy Fuel
Oil) and adaptability to meet varied power requirement needs.
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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