4 Jun 2018 07:00
Victoria Oil & Gas PLC (AIM: VOG)
4 June 2018
Victoria Oil & Gas Plc
("VOG" or "the Company")
Logbaba Field Reserves Update
Victoria Oil & Gas Plc, the Cameroon based gas and condensate producer and distributor, is pleased to provide the following update, based on internal estimates, on the reserves position for the Logbaba Field in Cameroon. This follows evaluation of the results obtained from seismic reprocessing, incorporation of the production history from existing wells and completion of the 2017 development drilling campaign to deliver Logbaba La-107 and La-108.
Highlights
· Subsurface reinterpretation complete and new subsurface model developed integrating re-processed seismic and new well data with historic field mapping
· Proved reserves (1P) defined by connected volumes to all the wells drilled into Logbaba revised to 69bcf, an increase of 29bcf (73%)
· Field remaining 2P reserves revised to 309bcf, an increase of 106bcf (52%)
· Reserves / production ratio (2P) increased to 10yrs at 90mmscfd which supports growth in the Douala market and will underpin new long-term gas contracts
· Full field reservoir development plan in preparation to locate future development wells
Kevin Foo, VOG Chairman said, "The results of this reserves update are a major advance to our business in Cameroon. They provide a significant value upgrade to the Logbaba Project and confirm that the field reserves will meet the growing demand in the Douala market for the foreseeable future. Importantly, this will now enable us to market larger volumes of natural gas on a longer term contractual basis to buyers, providing them with the security of supply they require. We are actively negotiating Gas Sales Agreements for these projects and we will provide updates when appropriate."
A full subsurface reinterpretation of the Logbaba Field has been completed following conclusion of the 2017 drilling campaign. This incorporates the reprocessed historic seismic data and the new well data as a basis for ongoing reservoir development. This leads to a material upgrade in the reserves of the Logbaba Field, Table 1.
Basis | Field Position at 1/1/17 | Field Position at 1/1/18 | |||||
| Initial Reserves | Cum Prod'n | Remaining reserves | Initial Reserves | Cum Prod'n | Remaining Reserves | VOG Net Reserves |
Proved (1P) | 49 | 9 | 40 | 82 | 13 | 69 | 40 |
Proved+ Probable (2P) | 212 | 9 | 203 | 322 | 13 | 309 | 176 |
Proved+ Probable+ Possible (3P) | 350 | 9 | 341 | 548 | 13 | 535 | 305 |
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All volumes are bcf and do not include condensate volumes Position at 1/1/17 based on Blackwatch report from August 2016 Position at 1/1/18 based on integrated reservoir study post La-107 and La-108 development drilling | |||||||
Table 1 - Logbaba field reserves update
The new proven + probable (2P) reserves level will support a production rate of 90mmscfd for 10 years; thereby enabling significant expansion of the business in support of the growing domestic gas market in Cameroon.
This evaluation supersedes the Blackwatch Report of August 2016 and is based on a new full field subsurface model incorporating interpretations from the reprocessed seismic together with the well data from La-107 and La-108. The work has been managed by VOG supported by external consultants who have provided subsurface expertise and modelling capability to produce the updated development plan for the field. This work will now enable selection of locations for future development wells, commencing with La-109, to continue development of the Logbaba Field in line with demand growth in Douala, Cameroon.
Sam Metcalfe, the Company's Subsurface Manager has reviewed and approved the technical information contained in this announcement in his capacity as a qualified person under the AIM Rules.
This announcement contains inside information.
For further information, please visit www.victoriaoilandgas.com or contact:
Victoria Oil & Gas Plc
Kevin Foo / Ahmet Dik Tel: +44 (0) 20 7921 8820
Strand Hanson Limited (Nominated and Financial Adviser)
Rory Murphy / Angela Hallett / Ritchie Balmer 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
Camarco (Financial PR)
Billy Clegg Tel: +44 (0) 20 3757 4983
Nick Hennis Tel: +44 (0) 20 3781 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 the highly prospective Douala Basin with the addition of the Matanda license area.
Victoria Oil & Gas is listed on the AIM market of the London Stock Exchange under the ticker VOG.