29 Jun 2016 07:00
29 June 2016
Victoria Oil & Gas Plc
("VOG" or "the Company")
Drilling Rig Arrival at Douala Port, Cameroon
Victoria Oil & Gas Plc today announces that the Savannah Oil Services Cameroon S.A. ("Savannah") Train Rig ("the rig") has arrived by ship to Douala port and the 2,756 tonnes of bulk load and containers have been offloaded and are ready for customs clearance. The new rail-mounted drilling platform for both a twin and step-out well will be located at the existing Logbaba plant and well site, approximately 13km from the port. VOG's wholly-owned subsidiary Gaz du Cameroun's ("GDC") schedule is to commence drilling in early Q3 and complete drilling by the end of 2016.
Overview
GDC is preparing to drill two wells into the onshore Cameroon Logbaba Field to supplement the two existing Logbaba production wells (La-105 and La-106). The board of VOG believes that the new Logbaba wells (La-107 and La-108) are required to meet the growing market demand for Logbaba gas, to develop Logbaba reserves, and to move some of our 2P (Proven plus Probable) reserves into the 1P (Proven) reserve category. One of the wells will twin the La-104 well drilled in 1957; the other will be a step-out well to be drilled into a target intended to prove up more Probable reserves. Both of the wells will be drilled directionally from a drilling pad adjacent to the Logbaba gas plant, and are to be tied into our production facilities immediately after they are drilled and completed. The La-104 twin well is almost vertical, with a target depth of 3,200m; the step-out well will be drilled to intersect a target about 1,100m to the south-east of the Logbaba drilling pad, also with a target depth of 3,200m.
Both wells are intended to be production wells from the Logbaba Formation, which is a thick sequence of interbedded sands and shales found at depths between 1,700m and 3,200m below the surface. In addition to developing the gas reserves in the Logbaba Formation, one of the wells, the La-104 twin, has an additional option of an 'exploration tail.' This could be drilled from the base of the Logbaba Formation down to 4,200m below the surface to test the hydrocarbon potential of the Mundeck Formation which had historical gas shows in La-104.
Logbaba Drilling Campaign
GDC has prepared rig pad foundations, including, leveling for the drill rig's track and preparations of the cellars and mud pits together with the lay down areas for the equipment and drill piping. Three drill conductors have been hammered into place and some extra mud pits and a further holding area are in the process of being finalised. Other major site preparations, including new warehousing for rig supplies, camp civils and the pre-drilling slope stabilisation work are completed. Transportation and assembly of all component drill parts and camp are being provided for the project by Savannah.
VOG Chief Executive Officer Ahmet Dik said: "The drilling rig has arrived in Douala port and we plan to commence drilling at the Logbaba site as soon as practicable. Our intention is to complete both the step-out and twin wells during 2016 aimed at unlocking further reserves and production capacity for sale to the burgeoning energy market in Douala. Additional gas reserves can be rapidly monetised to supply our captive energy market which we believe is largely insulated against fluctuating oil price and currency movements. "
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) 20 7260 1000
Strand Hanson Limited
Angela Hallett / Rory Murphy Tel: +44 (0) 20 7409 3494
Bell Pottinger
Daniel Thöle / Charles Stewart / Zara de Belder Tel: +44 (0) 20 3772 2499
Notes to Editors
About Victoria Oil & Gas Plc
Victoria Oil & Gas (VOG.L) is a unique African gas utility company.
The Company's subsidiary, Gaz du Cameroun S.A. ("GDC") owns a 60% participating interest and operates the onshore Logbaba Gas Project. The Logbaba Gas Project supplies cost effective, clean and reliable natural gas to industries in the Douala region of Cameroon. RSM Production Corporation, an affiliate of Grynberg Petroleum Company of Denver, Colorado holds the remaining 40% participating interest. In addition, VOG has recently been assigned a 75% participating interest in the Matanda block, which neighbours the Logbaba block. The remaining 25% participating interest is held by AFEX.
VOG also holds 100% of the West Medvezhye oil and gas exploration project near Nadym, Russia. Given the challenging economic environment in Russia, The Group has fully impaired the West Medvezhye assets.