20 Dec 2017 07:00
Victoria Oil & Gas Plc
("VOG" or "the Company")
La-108 Well Test Result Ahead of Expectations
Victoria Oil & Gas Plc is pleased to provide an update on the Group's well operations, which are managed by Gaz du Cameroun S.A. ("GDC"), a wholly owned subsidiary of VOG.
· Completion equipment and production "Christmas tree" installed and the drilling rig released from the La-108
· Initial gas flow rates up to 15mmscf/d commenced from just the Lower Logbaba sands of La-108 - ahead of expectations - La-107 flow tested at a lower rate of 4 mmscf/d from an equivalent horizon
· Operations on La-108 suspended ahead of testing the Upper Logbaba sands to allow production from La-107 during peak demand season
As previously announced, well La-108 was successfully drilled to its planned Target Depth (TD) of the 6" hole section at 2,865m Measured Depth (MD) (2,463m True Vertical Depth) on 7 November. The completion equipment has now been run, the drilling rig has been skidded off La-108 and released and the production Christmas tree has been installed.
Flow testing of the Lower Logbaba sands has now commenced, with flowrates from these sands up to 15 mmscf/d being achieved on a 40/64ths inch choke with a flowing wellhead pressure of 2006 psi. This is ahead of expectations and substantially better than the 4mmscf/d which was obtained from the Lower Logbaba sands in La-107. This is very encouraging and further evaluation will be carried out on these sands in 2018 before the well is put into full production. This work will also recover a spent perforating gun which currently remains stuck in the well.
When full production potential of the Lower Logbaba sands in La-108 has been evaluated, a decision will be taken on the timing of adding more perforations into the highly prospective Upper Logbaba sands.
As previously announced, analysis of the La-108 logs indicated 84.5m of net gas sand in the Logbaba Formation and current production results have been obtained from perforating 18.7m of sands in the Lower Logbaba only.
Commenting today Ahmet Dik, CEO, said: "It is very pleasing to have reached the end of drilling and completion operations on La-108 and the resultant release of the drilling rig. This milestone marks the end of the major capital spend on these wells as we move into the production phase. We have also achieved higher than expected flowrates from the Lower Logbaba sands in La-108. The Production Management Plan for the well is now being prepared by our team and we expect this to be completed by early 2018. Naturally, it is important to VOG that we meet short term demand, whilst aiming to maximise reserves from the field. This will help us meet the growing demand in the Douala market, which management believes will be forthcoming over the longer term."
Sam Metcalfe, the Company's Subsurface Manager, has reviewed and approved the technical information contained in this announcement. Mr. Metcalfe is a graduate in BA Geology, BSc Civil Engineering, and MSc Petroleum Engineering.
This announcement contains inside information.
For further information, please visit www.victoriaoilandgas.com or contact:
Victoria Oil & Gas Plc
Kevin Foo / Laurence Read Tel: +44 (0) 20 7921 8820
Strand Hanson Limited (Nominated Advisor)
Rory Murphy / Angela Hallett / Stuart Faulkner Tel: +44 (0) 20 7409 3494
Shore Capital Stockbrokers Limited (Joint Broker)
Mark Percy / Toby Gibbs (corporate finance) Tel: +44 (0) 207 408 4090
Jerry Keen (corporate broking)
GMP FirstEnergy (Joint Broker)
Jonathan Wright / David van Erp Tel: +44 (0) 207 448 0200
Camarco (Financial PR)
Billy Clegg Tel: +44 (0) 203 757 4983
Nick Hennis Tel: +44 (0) 203 781 8330
NOTES TO EDITORS:
Victoria Oil & Gas Plc ("VOG" or "the Company") is a fully-integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon. Through the Company's wholly-owned subsidiary, Gaz du Cameroun S.A. ("GDC"), VOG delivers gas via a 50km gas distribution pipeline network to a range of major industrial customers.
Since spudding its first wells in 2010, the Company has grown to become the dominant player in the Cameroon onshore gas market, primarily through the 57% owned Logbaba gas project. GDC is partnered on this project with RSM Production Company ("RSM"), and Société Nationale des Hydrocarbures ("SNH"), who have holdings of 38% and 5% respectively.
Subject to government approval VOG will extend it acreage over 3,500km2 of the highly prospective Douala Basin with the addition of the Matanda and Bomono license areas. A drilling programme on the Logbaba asset is underway to add further gas reserves to meet the growing demand for gas in Cameroon.
Victoria Oil & Gas is listed on the AIM market of the London Stock Exchange under the ticker VOG.