23 Mar 2015 07:00
Victoria Oil & Gas Plc
("VOG" or "the Company")
First Power Online at Bassa Power Station, Cameroon
Highlights
· 20MW of gas generated power now being supplied to grid from Bassa Power Station
· Total GDC gas production now approximately 8.5 mmscf/d
· 30MW Logbaba Power Station now expected online in April
Victoria Oil & Gas Plc announces that its 100% owned subsidiary, Gaz du Cameroun S.A. ("GDC"), is now supplying approximately 4.5 mmscf/d of gas to the sixteen Altaaqa Gensets installed at Bassa Power Station. Following the pipeline connection to Bassa by GDC and the successful installation of the Gensets by Altaaqa, 20MW of power generated is now being fed into the grid. Total GDC gas production has risen from 4.5mmsc/d to approximately 8.5 mmscf/d.
With the Bassa power supply online, Altaaqa will now focus on completion of Genset installation at the 30MW Logbaba Power Station. The original schedule of having all 50MW online by the end of March 2015 is now expected in April 2015 due to shipping delays.
Kevin Foo, Executive Chairman, said: "4.5mmscf/d of gas from Logbaba to supply 20MW of power from Bassa to the National Grid is a proud achievement for GDC and an important step forward for Cameroon. Our partners Altaaqa and ENEO deserve hearty congratulations. All companies are now focussed on delivering the 30MW from the Logbaba Station."
Joel Nana Kontchou, CEO ENEO Cameroon, said: "The project addresses a shortage in the country's electricity supply due to a strong increase of demand combined with a lack of a reserve for the electric system; it will help to cover the demand of electricity and that's our way of feeling the pain of Cameroonians. We are pleased to work with GDC and Altaaqa, companies that share our deep commitment to responding to Cameroon's critical infrastructure needs."
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
Tavistock Communications
Jos Simson / Edward Portman/ Nuala Gallagher Tel: +44 (0) 20 7920 3150
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 gas to industries in the Douala region from its onshore Logbaba Gas Project. Industrial customers are primarily supplied with gas through a 31.3km pipeline network built by GDC in Douala. GDC products currently include thermal gas, gas condensate and gas for electricity generation. GDC gas is attractive to customers due to its reliability, price competitiveness, low hydrocarbon emissions (compared to Heavy Fuel Oil) and adaptability to meet varied power requirement needs.
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 hindrance 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 and gas. Hydroelectric dams are highly seasonal, with stream rates significantly varying from 6,000m3 per second in the wet season to 50m3 per second in the dry season. As with many hydro electrical systems transmission loss is also a constant issue when balancing power loads across 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 Cameroons national energy strategy.