(Alliance News) - Victoria Oil & Gas PLC said on Thursday that wholly owned subsidiary Gaz du Cameroun SA had received approval from the minister of Mines, Industry & Technological Development for the extension of its Matanda Block licence.
Shares in Victoria were up 9.7% at 3.46 pence on Thursday morning in London.
The London-based oil and gas company said the exploration phase of the licence had been extended by one year from December 17.
Gaz du Cameroun was assigned 75% ownership and became operator of Matanda in December 2018 with oil exploration and production company Afex Global Ltd holding the remaining 25%.
Victoria added that Societe Nationale Des Hydrocarbures - national oil and gas company of Cameroon - has a 25% back-in right after an exploitation license is granted.
Victoria estimated that its prospective resources remains 1.196 trillion cubic feet in the onshore Matanda licence.
Chief Executive Roy Kelly said: "We are extremely pleased to have received this extension for another year and, once again, we thank the minister and Societe Nationale Des Hydrocarbures 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... 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."
By Heather Rydings; heatherrydings@alliancenews.com
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