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16 Nov 2009 07:00
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16 November 2009
Victoria Oil & Gas Plc
(AIM: VOG)
Update of Logbaba Gas and Condensate Project, Cameroon
Well La-105 at the Logbaba project in Cameroon encounters approximately 90 feet of gross sandstone pay at depth of 6,030 feet
The Company is now entitled to apply for 35 year exploitation licence
Well expected to reach total depth of 10,300 feet within four weeks
GeoDynamics Research Srl ("GDR") commences passive seismic spectroscopy survey over entire licence area
Victoria Oil & Gas Plc, the AIM quoted oil and gas exploration and development company with assets in Cameroon and the FSU, is pleased to announce an update on drilling of Well La-105 at its Logbaba gas and condensate project in Douala, Cameroon ("Logbaba").Β
During successful drilling of the 12-ΒΌ inch hole section, around 90 feet of gross sandstone pay at approximately 4,000 psi pressure were intersected at depths between 6,030 and 6,120 feet measured depth. These gas-bearing zones were intersected as anticipated by the well prognosis and appear to have good porosity and permeability.
This horizon appears to correlate to sand that was also penetrated by Well La-103, which was drilled by Elf in the 1950s. That single zone in La-103 flowed at approximately 4.5 million cubic feet of gas (around 800 barrels of oil equivalent) per day on an open-hole drill stem test. Although the sands were tested, they were not included in the proven reserve estimate performed by RPS Energy in 2008, which calculated proven and probable reserves for Logbaba of 106 billion cubic feet.
Following this discovery and penetration of the first gas-bearing horizon, VOG now intends to apply for the 35-year exploitation and production licence.Β
Drilling has reached a depth of 6,200 feet measured depth and well conditions continue to require careful management. Temperature at the planned total depth of 10,300 feet is projected to be as high as 320 degrees Fahrenheit at pressures exceeding 8,000 psi and so additional drilling and mud-cooling equipment is being mobilised to the site before commencement of the final 8-Β½ inch hole section. The well is anticipated to be completed within four weeks.
Meanwhile, a team from GDR has commenced an Infrasonic Passive Differential Spectroscopy (IPDS) or passive seismic spectroscopy survey of Logbaba. Given the large numbers of buildings on or around the field, conventional seismic surveying would prove extremely difficult. However, passive seismic spectroscopy surveying is ideally suited to the environment as it does not rely on artificially-created seismic waves.
The survey will take measurements at approximately 50 locations around the field to identify areas of potential hydrocarbon saturation. The survey is expected to take about 15 days, with initial findings available within two months of completion. This will be the first passive seismic spectroscopy survey in Cameroon and the first geophysical data of any kind acquired for Logbaba since the original seismic lines acquired by Elf in the 1950s.
Commenting on today's update, Chairman Kevin Foo said today, "We are very pleased to have encountered 90 feet of our first gas sands at Logbaba. These could ultimately result in new reserves for the field. This also means we can apply for the 35-year production rights for the project. Conditions in the well are complex so we are bringing in additional equipment before completing the final hole section."
Victoria Oil & Gas PlcΒ - Tel: +44 (0) 20 7921 8820
George DonneΒ /Β Kevin Foo
Strand Hanson Limited - Tel: +44 (0) 20 7409 3494
Simon Raggett / Angela Peace
Fox-Davies Capital - Tel: +44 (0) 20 7936 5220
Daniel Fox-Davies / Oliver Stansfield
Conduit PRΒ - Tel: +44 (0) 20 7429 6607
Jonathan Charles / Ed Portman
The information in this release has been reviewed by Radwan Hadi, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies. Mr. Hadi, Deputy Managing Director of Blackwatch Petroleum Services Limited and Chief Operating Officer of VOG, is a petroleum/reservoir engineer with over 30 years experience in oil and gas exploration and production.
Background Information on Victoria Oil & Gas Plc:
Victoria Oil & Gas is an independent oil and gas exploration and production company with projects in Africa and the FSU. The Company's principal assets are the Logbaba gas and condensate project in Cameroon and the West Medvezhye gas field in Siberia, Russia. Logbaba is located in Douala, the economic capital of Cameroon. The field was discovered in the 1950s and all four exploration wells encountered gas. Three of the wells flowed gas at rates of up to 62 million cubic feet per day. West Medvezhye is situated in the prolific Yamal-Nenetsk hydrocarbon region in Siberia. An independent reserve audit estimated prospective resources for the field of over 1.1 billion barrels of oil equivalent.
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