2 Feb 2015 07:00
Victoria Oil & Gas PLC (AIM:VOG)
2 February 2015
Victoria Oil & Gas Plc
("VOG" or "the Company")
Gas in Pipeline Pressurised to ENEO Power Stations, Cameroon
Victoria Oil & Gas Plc announces that Gaz du Cameroun S.A. ("GDC"), its wholly owned subsidiary, has successfully completed pipeline pressure testing up to the boundaries of the Bassa and Logbaba power stations located in the port-city of Douala, Cameroon. GDC will now commence installing pressure reduction and metering units at both stations.
The next significant phase of the project involves the delivery and installation of gas fired power generation sets ("Gensets") to the power stations. The Gensets are being shipped to Cameroon by Altaaqa Alternative Solutions Projects DWC-LLC ("Altaaqa"). Upon arrival in Douala, ENEO Cameroon S.A. ("ENEO"), Cameroon's power utility company, will take responsibility for expediting the Gensets through the port to both power plants. Once the Gensets are on site, Altaaqa will install and commission the Gensets at Bassa and Logbaba.
ENEO requires both power stations to be on line and delivering 50MW by the end of Q1 2015, and GDC is on target to complete all of its deliverables before that deadline. Following commissioning of the Gensets, GDC's obligation will be to supply gas to the 20MW and 30MW power stations in Douala. All operations and maintenance responsibilities for the Gensets remain with Altaaqa and ENEO.
GDC signed binding term sheets with ENEO on 24 December 2014 to supply gas with guaranteed 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 GDC in terms of scale and profitability at a fixed $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 Strand Hanson Limited
Kevin Foo / Laurence Read Angela Hallett / Stuart Faulkner
Tel: +44 (0) 20 7921 8820 Tel: +44 (0) 20 7409 3494
Numis Securities Tavistock
John Prior / Ben Stoop Ed Portman / Jos Simson
Tel: +44 (0) 207 260 1000 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.