2 Jan 2019 07:00
2 January 2019
Victoria Oil & Gas Plc
("VOG" or "the Company")
Presidential Decree on Matanda Received
Victoria Oil & Gas Plc, the Cameroon based gas and condensate producer and distributor, is pleased to announce that its wholly owned subsidiary Gaz du Cameroun S.A ("GDC") has received the Decree signed by H.E President Paul Biya on December 17, 2018, authorising the transfer of interest in the Matanda Production Sharing Agreement ("Matanda PSC") licence assigned from Glencore in early 2016.
Highlights
· GDC has now secured 75% ownership and is operator of the Matanda PSC, adjacent to its Logbaba concession, which at 1,235 square kilometres Matanda is over 60 times the area of the Logbaba concession
· North Matanda offshore field contains gross estimated 2C recoverable gas resources of 150bcf and 6 million barrels of condensate and upside of 1TCF of gas
· Onshore prospects close to Logbaba gas pipeline network will be the focus, where resources of Gross Prospective Mean GIIP are estimated at 1303bcf of gas contained in 23 prospects and leads
· Existing GDC infrastructure with close proximity to Matanda will allow new discoveries to be delivered to industrial users efficiently and promptly
· A minimum work programme obligation of one exploration well plus seismic reprocessing to be completed in the first 2 years of the assignment following the Presidential Decree.
GDC, Glencore Exploration Cameroon ("Glencore") and Afex Global Limited ("AFEX") have received the Decree signed by H.E President Paul Biya on December 17, 2018, authorising the transfer of interest in PSC assigned from Glencore in early 2016. The Decree confirms the previously agreed assignment of the Matanda Block ("Matanda"), a large hydrocarbon licence in Cameroon. The terms of the assignment include the transfer by Glencore of 75% of its participating interest in the PSC to GDC and 15% of its participating interest to AFEX, who previously held a 10% interest. Société Nationale Des Hydrocarbures ("SNH") have a 25% back in right after an Exploitation License is granted.
As consideration for the assignment, GDC will become Operator and will assume responsibility for carrying out the Work Programme agreed with the Government of Cameroon. The agreed obligation for this work programme is one exploration and appraisal well plus reprocessing of existing seismic in the first 2-year period of the PSC.
Matanda covers an area of approximately 1,235 square kilometres and is highly prospective for natural gas and gas condensate. It contains the previously discovered offshore North Matanda Field with current 2C recoverable gas resources of 150bcf Gross and 6 million barrels of condensate and upside of 1TCF of gas. In addition, there are further onshore Prospective resources of 1303bcf of gas contained in 23 identified prospects and leads.
GDC and AFEX will focus on the onshore prospects located within a few kilometres of the adjacent Logbaba concession. The close proximity of the existing Logbaba gas pipeline network will also allow for new discoveries on Matanda to deliver additional natural gas to industrial users in Cameroon.
The Company commented: "It is very rewarding to receive Presidential approval for this acquisition. Matanda provides material upside to underpin our growth plans and with a block size 60 times larger than Logbaba and significant onshore potential, development of Matanda in parallel with Logbaba should provide both size and flexibility. Matanda, which is primarily onshore and on the western side of Douala, provides an opportunity to develop an independent gas field to feed the growing industrial and domestic markets in the Bonaberi areas and beyond. Additionally, the offshore North Matanda Field has considerable potential in the longer term.
We thank AFEX, Glencore and SNH, the Cameroon national oil company, for their assistance in bringing this opportunity to a successful conclusion. The development of Matanda will now be built on the firm foundation established by Glencore and AFEX. The assignment and development of Matanda is consistent with our strategy to provide clean and reliable energy to industrial users in Cameroon."
Sam Metcalfe, the Company's Subsurface Manager has reviewed and approved the internal resource estimates and technical information contained in this announcement in his capacity as a qualified person under the AIM Rules.
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 / Stuart Faulkner / Ritchie Balmer 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)
FirstEnergy Capital LLP (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
Background on Matanda
The Matanda Block is situated in the northern part of the Douala Basin, in the transitional zone between the Wouri estuary and the neighbouring onshore area to the south-west of the city of Douala.
The block borders GDC's Logbaba concession at the southern boundary. Approximately 30% of the block is in shallow water, whilst the remainder is onshore.
The North Matanda Field was originally discovered by Gulf Oil Corporation in 1980, and to date three offshore wells on the block have tested gas and condensate from the Logbaba Formation of the North Matanda Field. One onshore well has also encountered gas reservoirs in the Logbaba Formation. During 2008 to 2010, Glencore and AFEX acquired 200 square kilometres of 3D seismic survey over the North Matanda Field and 150 kilometres of 2D seismic survey over the northern, onshore portion of the block. In May 2013, Glencore spudded well NM-3x, an appraisal well into the North Matanda Field to further define and delineate the Cretaceous reservoirs.
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