TIDMVOG
RNS Number : 4334U
Victoria Oil & Gas PLC
07 April 2016
7(th) April 2016
Victoria Oil & Gas Plc
("VOG" or "the Company")
Victoria Oil & Gas Secures Government Approval for 75%
interest
in 1,235 square kilometres Matanda Block in Cameroon
Victoria Oil & Gas Plc, the integrated natural gas producing
utility, is pleased to announce that the Government of Cameroon has
approved the assignment from Glencore Exploration Cameroon Limited
of a 75% participating interest in the Matanda Production Sharing
Contract ("PSC") in the Matanda block ("Matanda") to Gaz Du
Cameroun Matanda S.A. ("GDC Matanda"). The remaining 25%
participating interest is held by Afex Global Limited ("AFEX").
As outlined in the announcement of 18th February 2016 VOG will
become Matanda's operator through its 100% owned subsidiary.
Details of the work programme will be announced following a
forthcoming Operating Committee meeting between GDC Matanda, AFEX
and Société Nationale des Hydrocarbures du Cameroun , the Cameroon
national oil company.
Matanda covers an area of approximately 1,235 square kilometres
and is highly prospective for significant natural gas and gas
condensate resources. GDC Matanda will concentrate on the onshore
areas of Matanda near the existing Logbaba field with the aim of
increasing reserves of gas to be sold into existing and new markets
within Cameroon. Work is expected to commence at Matanda during Q4
2016 and will initially involve interpretation of the very large
databank of 2D and 3D seismic information with the aim of
identifying a drill target.
Kevin Foo, Chairman, said: "We are pleased with the approval of
our 75% assignment over the Matanda PSC and are keen to begin our
work programme. The large Matanda license area provides the Company
with an area over 60 times our existing concession at Logbaba and a
critical strategic and geological connection between the two. Upon
completion of the current Logbaba two well programme for the second
half of this year, we shall turn our attention to development of
Matanda".
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 Thöle / Charles Stewart / Zara de Belder 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 natural gas to industries in the
Douala region from its onshore Logbaba Gas Project. Industrial
customers are supplied with gas through a 33km pipeline network
built by GDC in Douala.
GDC's gas supply to the thermal, grid power and retail power
markets in Douala, is helping to ensure that the Cameroon economy
is underpinned with stable energy. By developing a fully integrated
gas supply network, connected to wells located within the city
itself, GDC has established a new energy supply within 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
1.4Bnboe. Given the challenging economic environment in Russia, The
Group has fully impaired the West Medvezhye assets.
Background on Matanda
The link below shows the Matanda Block location
http://www.rns-pdf.londonstockexchange.com/rns/4334U_-2016-4-6.pdf
The Matanda Block is situated in the northern part of the Douala
Basin, in the transitional zone between the Wouri estuary and the
neighbouring onshore area to the south-west of the city of Douala.
The block borders GDC's Logbaba concession at the southern
boundary. Approximately 30% of the block is in shallow water,
whilst the remainder is onshore.
The North Matanda Field was originally discovered by Gulf Oil
Corporation in 1980 and to date three offshore wells on the block
have tested gas and condensate from the Logbaba Formation of the
North Matanda Field. One onshore well also encountered gas
reservoirs in the Logbaba Formation. During 2008 to 2010, Glencore
Cameroon and AFEX acquired 200 square kilometres of 3D seismic
survey over the North Matanda Field and 150 kilometres of 2D
seismic survey over the northern, onshore portion of the block.
In May 2013, Glencore Cameroon spudded well NM-3x, an appraisal
well into the North Matanda Field to further define and delineate
the Cretaceous reservoirs. The NM-3x well was completed in October
2013 and studies based on its results have concluded that the North
Matanda Field extends to the onshore area of the block and
continues towards the boundary of Logbaba and that significant
potential exists for large-scale gas reserves in this field.
In 2011 and 2014 ERCL, an independent specialist in upstream oil
and gas consultancy, reviewed the Operator's estimates of resources
for the North Matanda Field based on the new data from the NM-3x
well and concluded that the P50 'gas-in-place' volume of 1,864 Bcf
with 'condensate-in-place' of 136 MMbbls were valid estimates for
the area inside the Matanda 3D seismic survey.
NM-3x drilled deeper than the previous North Matanda wells and
discovered new, deep gas reservoirs, which are not included in the
above volume resource numbers. Following assessment of extensive
drill logs and geophysical data by Afex, both Afex and VOG believe
that significant potential exists for large-scale gas reserves in
this field.
It is also thought that the North Matanda Field extends to the
onshore area of the block.
The Matanda block also contains additional Cretaceous prospects
and Tertiary prospects that offset the Moambe and Zingana
discoveries drilled in 2015 by Bowleven Plc. in the adjacent Bomono
concession. Matanda is located between the onshore blocks of
Logbaba and Bomono concession and the offshore block of the Etinde
concession. Gas has been discovered at all six wells drilled at
Logbaba and in two new exploration wells currently under test by
Bowleven Plc. at Bomono. The Etinde concession, operated by New Age
(African Global Energy) Limited, has 2C gas and condensate
resources of 345 Mmboe.
About AFEX
AFEX is an independent oil and gas E&P company incorporated
in Bermuda and focused exclusively on opportunities in West Africa.
Since its establishment in 2006 the Company has successfully
executed its strategy of acquiring oil and gas exploration and
production acreage in the Republic of Cameroon, the Republic of
Angola, the Republic of Mali and the Republic of Equatorial Guinea.
AFEX's key asset is the Matanda Block in Cameroon, which it entered
via a PSC signed in April 2008. AFEX's shareholders include both
Gulf Cooperation Council institutions and high net worth
individuals. AFEX is advised in corporate and financial matters by
Gulf One Investment Bank BSC.
Cameroon Energy Market
Cameroon continues to evolve as a key African economy with the
industrial port of Douala a key import and export gateway for goods
to most of Central and West Africa. Power deficits remain a major
hindrance to Cameroon's economic expansion, with demand increasing
7% annually. Power remains high on the political agenda and gas is
seen as a key element of the national energy strategy. Grid power
is heavily reliant on seasonal hydroelectric dams to supply 75% of
demand and the shortfall is made up from gas and heavy fuel oil.
The Logbaba gas and condensate project is a rare example of
successful onshore gas monetisation in Sub-Saharan Africa, with
energy provision aligned with the national interests. GDC, with the
full support of the Government of Cameroon has successfully
unlocked natural gas for industrial use. GDC estimates demand for
gas in the Douala and Yaoundé area for thermal and power generation
and Compressed Natural Gas (CNG) to be in excess of 150mmscf/d. GDC
is focused on growing production to help meet this demand and to
displace heavy fuel oil by providing a cleaner and more reliable
energy source.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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