Victoria Oil & Gas PLC New Thermal Gas Connections and Production Update (4437P)
June 08 2015 - 2:00AM
UK Regulatory
TIDMVOG
RNS Number : 4437P
Victoria Oil & Gas PLC
08 June 2015
Victoria Oil & Gas Plc
("VOG" or "the Company")
New Thermal Gas Connections and Production Update, Cameroon
Highlights
-- Three new thermal customers online, including Dangote Cement Cameroun S.A. ("Dangote")
-- Expected additional daily gas consumption of 0.7mmscf
-- Average production rate for May was 12.4mmscf/d
-- Focus now on production build out on Bonaberi side of Wouri River
Victoria Oil & Gas Plc today announces that its 100% owned
subsidiary, Gaz du Cameroun S.A. ("GDC"), has completed connections
and is supplying natural gas to three new industrial customers from
its gas pipeline network in Douala. The connections include the new
Dangote cement clinker plant located on the southern shore of the
Wouri River, Douala.
The construction of the 1.5 million tonnes per year clinker
cement plant by Dangote is a reflection of the significant
commercial growth occurring in the port-city, Douala, which is a
major regional manufacturing and trade hub, with seaborne access
and developed infrastructure.
In addition, GDC is now supplying gas to New Foods, a food
processing business owned by major conglomerate the Fokou Group,
and Société Industrielle Camerounaise des Cacaos S.A. ("Sic
Cacaos"), a subsidiary of Barry Callebaut, which are a Swiss-owned
chocolate group and one of the world's largest producers of
cocoa.
Sic Cacaos recently increased its capacity from 32,000 to 50,000
tonnes per year of cocoa and now accounts for 25% of total Cameroon
production.
Notably, both of these new customers have converted their
operations from heavy fuel oil to natural gas.
The total estimated additional daily consumption from the three
new connections is 0.7mmscf.
A summary of the gas production figures for the months from
January 2015 to the end of May 2015 is shown below:
Logbaba Production Figures
(mmscf/d)
Jan-15 Feb-15 Mar-15 Apr-15 May-15
Monthly Average 4.0 4.1 5.5 11.3 12.4
Mon-Fri 5 Day Average 4.6 4.4 5.8 11.7 12.8
Peak daily 5.0 4.8 9.2 16.9 16.2
Condensate (bbls) 1,812 1,587 2,946 4,532 5,366
April and May figures reflect some seasonal variations in demand
from thermal customers and steady build-up of gas consumption by
ENEO Cameroon S.A. Average daily gas consumption for the first five
days of June was 16mmscf/d.
Kevin Foo, Executive Chairman, said: "We welcome Dangote, New
Foods and Sic Cacaos as important new thermal customers for GDC.
This is confirmation that industries will expand their operations
when they can be guaranteed consistent supply of energy without the
need for storage or transportation. Gas supply to the Bassa and
Logbaba power stations is steady and we are now focussing on
additional customers in the Bonaberi industrial area across the
Wouri River. Our monthly average gas consumption is triple the
February average and we expect to exceed our 10.5mmscf/d target for
the 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
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 supply 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 supplied with gas through a 32.9km pipeline network built by
GDC in Douala.
Through gas generated power supplied by ENEO to the National
Grid, GDC is helping to support the Cameroon economy with stable
power. By developing a fully integrated gas supply network,
connected to wells located within the city itself, GDC is providing
energy to Douala that is 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 hurdle 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, diesel 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
hydroelectric systems, transmission loss is also an issue when
balancing power loads across long 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 Cameroon's national energy strategy.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCDMGGVLNVGKZG
Victoria Oil & Gas (LSE:VOG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Victoria Oil & Gas (LSE:VOG)
Historical Stock Chart
From Apr 2023 to Apr 2024
