(Alliance News) - Cameroon-based gas and condensate producer Victoria Oil & Gas PLC on Tuesday said its subsidiary Gaz du Cameroun SA has received approval for the extension of the Matanda Block licence.
Shares in Victoria Oil & Gas were up 19% at 4.98 pence in London in afternoon trading.
Gaz du Cameroun became operator of the Matanda Block in December 2018 and was assigned 75% ownership, with Afex Global Ltd holding the remaining 25%. The 1,235 square kilometre Matanda Block is adjacent to the subsidiary's Logbaba concession, which it said offers an easy monetisation route for gas discoveries.
The licence's exploration phase has been extended by one year from December 17 as the project has progressed well in the first two years of Gaz du Cameroun's involvement. Approval was granted by the Cameroon Minster of Mines, Industry & Technological Development.
A detailed internal prospect evaluation identified 19 gas prospects in shallower Tertiary-aged reservoirs, plus seven prospects in deeper, Cretaceous-aged prospects.
Victoria Oil & Gas said it believes the larger of these prospects has mean unrisked, prospective resources of over 65 billion cubic feet, with a geological chance of success estimated at better than 40%.
Victoria Oil & Gas said it carried out an environmental and social impact assessment this year, scheduled for completion in 2021, to guarantee minimal environmental impact before drilling an exploration well.
Chief Executive Roy Kelly said: "The first well will undoubtedly be in the onshore area where nearby wells in the Bomono license have derisked the shallower plays, and proximity to the [Gaz du Cameroun]-operated gas distribution infrastructure allows easier monetisation of discoveries. We are further encouraged by the ESIA that will soon be completed."
By Zoe Wickens; zoewickens@alliancenews.com
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