19 Jan 2015 07:00
19 January 2015
Victoria Oil & Gas Plc
("VOG" or "the Company")
Gas Pipeline Reaches ENEO Power Stations
Victoria Oil & Gas Plc announces that Gaz du Cameroun ("GDC") has completed laying pipeline to the boundaries of the ENEO Power Station properties at Bassa and Logbaba ahead of schedule. The 20 MW Bassa Power Station is located 0.3km from our operating northern pipeline and the 30 MW Logbaba Power Station is located 1.3km along the proposed eastern leg off our main line. The pipeline is currently under test and it is anticipated that testing will be completed by the end of this week.
ENEO requires both power stations to be on line and delivering 50MW by the end of Q1 2015 and GDC anticipates that it will complete all of its deliverables before that deadline.
GDC signed binding term sheets with ENEO in December 2014 to supply gas at minimum take or pay levels of 9mmscf/d in the January-June dry season and 3mmscf/d in the July-December wet season. The Agreement with ENEO is a major gas supply contract for VOG in terms of scale and profitability with guaranteed minimum take or pay gas consumption at a fixed US$9/mmbtu over the two year contract term. The contract can be extended by mutual agreement.
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
Ed Portman / Simon Hudson Tel: +44 (0) 20 7920 3150
Notes to Editors
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 26km 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 ("RSM"), 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.
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