21 Apr 2010 07:00
21 April 2010
Victoria Oil & Gas Plc
("VOG" or the "Company")
Update on Logbaba Gas and Condensate Project, Cameroon
Highlights
Logbaba Gas and Condensate Project, Cameroon ("Logbaba")
·; Successful completion of drilling of Well La-106 to a depth of 10,509 feet on 17th April 2010, deeper than originally planned due to the presence of gas-bearing sands to 10,400 feet
·; In excess of 300 feet of gross pay delineated in multiple gas-bearing sands.
·; Logging underway and well test to proceed after casing completion
·; Completion of La-106 fulfills key licence and joint venture requirements
·; Company focus and conceptual engineering work for gas production facilities completed with a view to achieving first gas supplies in Q4 2010
Victoria Oil & Gas Plc, (AIM: VOG), the oil and gas exploration and development company with assets in Cameroon and the FSU, is pleased to announce the following operational updates.
Logbaba
VOG's second well, La-106 at the Logbaba gas and condensate project ("Logbaba") in Doula, Cameroon successfully reached a total measured depth of 10,509 feet on 17th April 2010. Well La-106 is currently being logged prior to its completion as a development well. The well was drilled deeper than planned due to the better than expected sand quality in the Lower Logbaba sections. Multiple gas-bearing sands were encountered between 5,482 feet and 10,400 feet, which can be correlated to wells drilled in the 1950's. The data obtained indicates in excess of 300 feet of gross pay. Further detailed information on La-106 will be announced after running open-hole logs and completing the petrophysical evaluation. Well flow tests will be run after the casing is set.
VOG's first well in Cameroon, La-105, was completed in March 2010 and tested at rates in excess of 55 million cubic feet of natural gas and 1,000 barrels of condensate per day (together approximately 10,000 barrels of oil equivalent per day) between depths of 7,005 and 8,500 feet from Lower Logbaba and Upper Logbaba D sands.
The completion of La-106 means that the key licence and joint venture requirements have been met. The Company has now completed all significant commitments under the exploration licence agreement and is in the process of submitting the necessary documentation to the Cameroon government to be awarded the thirty five year exploitation licence.
Conceptual engineering for the gas production facilities at Logbaba and the pipeline to previously identified industrial customers has now been completed and has confirmed the feasibility of the project and its design assumptions. Detailed engineering, budget and schedule definition is underway with the target to deliver first gas to customers in Q4 2010. The Company is working closely with all Ministries and stakeholders in Cameroon to ensure that plant and pipeline construction meets the highest engineering and safety standards and that all permits and licences to operate are expedited.
VOG Chairman Kevin Foo said, "Drilling two out of two successful wells in Cameroon is a notable achievement and we expect that logging and testing of La-106 will confirm our confidence in this field and match the excellent results that La-105 achieved. Our focus now is to build our production facilities and pipeline to deliver gas and condensate to our customers by Q4 2010."
West Med
Meanwhile in Russia, the 2010 work programme is underway at the West Medvezhye (West Med) exploitation/licence in the prolific Yamal-Nenetsk hydrocarbon region in Northern Siberia. The current work includes Gas Tomography and Passive Seismic spectroscopy surveys over a large part of the block as part of the West Med appraisal and delineation programme and a 62 km winter road has been built.
Victoria Oil & Gas Plc - Tel: +44 (0) 20 7921 8820
Jonathan Scott-Barrett / 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 PR - Tel: +44 (0) 20 7429 6611
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 industrial capital of Cameroon. The field was discovered in the 1950s and all four exploration wells encountered gas. VOG's first well in Cameroon, La-105, was completed in March 2010 and tested at rates in excess of 55 million cubic feet of natural gas and 1,000 barrels of condensate per day (together approximately 10,000 barrels of oil equivalent per day) between depths of 7,005 and 8,500 feet from Lower Logbaba and Upper Logbaba D sands.
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.