26 Jun 2017 07:00
26 June 2017
Victoria Oil & Gas Plc
("VOG", "the Company" or "the Group")
ENEO Gas Supply Extension, Douala Cameroon
Victoria Oil & Gas Plc today announces that it has extended the current gas supply agreement with ENEO Cameroon S.A. ("ENEO"), the Cameroon energy joint venture between UK Group Actis and the Cameroon Government, until 31 December 2017.
The extension will enable ENEO and the Company's 100% owned subsidiary, Gaz du Cameroun S.A. ("GDC") to optimise all technical and financial elements of a long-term gas supply arrangement aimed at increasing the current contractual power supply of 50MW to beyond 100MW. The take-or-pay components will remain in place and, until year end, an interim gas price of US$7.50/mmbtu has been agreed.
The Group continues to prove its commitment to Cameroon and have been proud to help provide the Douala region with additional power to meet fast growing demands.
The drilling of the two new wells at Logbaba continues. The Company will provide the market with an update on drilling progress shortly.
Commenting today Ahmet Dik, CEO, said; "VOG and ENEO have agreed that gas supply will continue until the end of the year. We are working with ENEO to create long term solutions, using natural gas for power generation beyond 100MW. We believe there is demand for more than 150mmscf/d in Douala and we are in discussions with third party IPP licensees to supply gas."
This announcement contains inside information.
For further information, please visit www.victoriaoilandgas.com or contact:
Victoria Oil & Gas Plc
Kevin Foo / Ahmet Dik / Laurence Read Tel: +44 (0) 20 7921 8820
Strand Hanson Limited
Rory Murphy / Stuart Faulkner / James Dance Tel: +44 (0) 20 7409 3494
Shore Capital Stockbrokers Limited (Joint Broker)
Mark Percy / Toby Gibbs (corporate finance) Tel: +44 (0) 20 7408 4090
Jerry Keen (corporate broking)
FirstEnergy Capital LLP (Joint Broker)
Jonathan Wright / David van Erp Tel: +44 (0) 20 7448 0200
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 60% participating interest in the onshore Logbaba Gas Project. Industrial customers are supplied with gas through a 50km pipeline network built by GDC in Douala. GDC is also the holder of a 75% interest in the Matanda PSC.
GDC's gas supply to the thermal, grid power and retail power markets in Douala, is helping to ensure that the Cameroon economy is underpinned with stable energy. By developing a fully integrated gas supply network, connected to wells located within the city itself, GDC has established an energy supply within Douala that is cost effective, reliable, safe and cleaner than liquid fuel alternatives.
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. Given the challenging economic environment in Russia, The Group has fully impaired the West Medvezhye assets and is seeking a farm in partner or sale of this asset.