Victoria Oil & Gas PLC Ministerial Approval on Matanda Licence Extension (5554W)
December 23 2021 - 2:00AM
UK Regulatory
TIDMVOG
RNS Number : 5554W
Victoria Oil & Gas PLC
23 December 2021
23 December 2021
Victoria Oil & Gas Plc
("VOG" or "the Company")
Ministerial Approval on Matanda Licence Extension Received
Victoria Oil & Gas Plc, the Cameroon based gas and
condensate producer and distributor, is pleased to announce that
its wholly owned subsidiary Gaz du Cameroun S.A. ("GDC") has
received, as operator, approval from the Minister of Mines,
Industry and Technological Development for the extension of the
Matanda Block licence.
The exploration phase of the licence has been extended by one
year from 17 December 2021. This has been approved by the Minister
and the associated Arrêté (Decree) has been received.
GDC was assigned 75% ownership and became operator of the
Matanda PSC in December 2018 with Afex Global Limited ("AFEX")
holding the remaining 25%. Société Nationale Des Hydrocarbures
("SNH") has a 25% back in right after an Exploitation License is
granted. The 1,235 square kilometre block Matanda Block is adjacent
to GDC's Logbaba concession and offers several monetisation options
for gas discoveries.
The Company's estimate of Prospective Resources remains
unchanged from those previously reported, namely 1,196 Bcf in the
Matanda Licence (onshore), the onshore being the area of initial
focus.
The results of a rigorous prospect evaluation, including
significant weighting on ESG elements of the site and operation,
led to the selection of the Marula prospect for the first well, the
largest of the onshore, Tertiary-aged prospects with internally
estimated unrisked P(mean) Prospective Resource of 69 Bcf, and
better than 40% geological chance of success.
Using the Environmental and Social Impact Assessment ("ESIA"),
coupled with the addition of ESG issues to the prospect evaluation
table, resulted in a well location that is on Government-owned,
late life plantation land, and over 3km km from any dwellings. The
site is also away from areas of vulnerable Mangrove forestation
which conservationists are working hard to protect in the coastal
areas on the Matanda Block.
At the date of this release, many of the long lead items have
been ordered and a short list of eight suitable rigs has been drawn
up and an Invitation to Tender issued with bids due early next
year. The total drilled depth ("TD") of the first well will be less
than 1,300m, and it will be vertical, so a trailer-mounted rig of
modest power (1,000 HP) will suffice. As there are no other onshore
drilling operations in Cameroon, the rig will need to be sourced
from overseas. The current schedule shows a Q2 2022 spud date,
subject to finalisation of the costings and the necessary funding
being available.
Commenting today Roy Kelly, CEO of VOG, said:
"We are extremely pleased to have received this extension for
another year and, once again, we thank the Minister and SNH for
expediting this extension. The first well will be in the highly
prospective onshore area where nearby wells in a similar play (in
the contiguous Bomono license) underwent extended well tests and
have significantly derisked these shallower plays. I am
particularly pleased with the role played by our ESG team in
influencing the selection of well location mindful of human and
natural habitats around the wellsite.
We face our usual challenge of mobilising land drilling
equipment into the country, but most of the rigs on our shortlist
are in the region."
For further information, please visit www.victoriaoiland g
as.com or contact:
Victoria Oil & Gas Plc
Roy Kelly/Rob Collins Tel: +44 (0) 20 7921 8820
Strand Hanson Limited (NOMAD)
Rory Murphy/James Dance Tel: +44 (0) 20 7409 3494
Shore Capital Stockbrokers Limited (Broker)
Mark Percy / Toby Gibbs (corporate advisory) Tel: +44 (0) 207
408 4090
Sam Metcalfe, the Company's Subsurface Manager has reviewed and
approved the technical information contained in this announcement
in his capacity as a qualified person under the AIM Rules. Sam, who
has an MSc in Petroleum Engineering from The University of Texas at
Austin, has over 35 years of industry experience.
Background on Matanda
The Matanda Block is situated in the northern part of the Douala
Basin, in the transitional zone around 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 wells drilled in the shallow
water of the Wourri Estuary on the block tested gas and condensate
from the Logbaba Forma on of the North Matanda Field. One onshore
well, Missellelle-1, also encountered gas reservoirs in the Logbaba
Forma on. During 2008 to 2010, Glencore 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
por on of the block. In May 2013, Glencore spudded well NM-3x, an
appraisal well into the North Matanda Field to further define and
delineate the Cretaceous reservoirs.
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