1 Nov 2013 07:16
Victoria Oil & Gas Plc
('VOG or the Company')
Update re: RSM Arbitration
VOG announces that the Secretariat of the International Chamber Commerce ("ICC") has informed the Company that pursuant to Article 24(2) of the Rules of Arbitration, the ICC International Court of Arbitration has extended the time limit for the above case until 29 November 2013.
For further information, please visit www.victoriaoilandgas.com or contact:
Victoria Oil & Gas Plc
Kevin Foo Tel: +44 (0) 20 7921 8820
Fox-Davies Capital
Daniel Fox-Davies Tel: +44 (0) 20 3463 5010
Strand Hanson Limited
Angela Hallett / Stuart Faulkner Tel: +44 (0) 20 7409 3494
Tavistock Communications
Ed Portman / Conrad Harrington / Simon Hudson Tel: +44 (0) 20 7920 3150
About Victoria Oil & Gas
Victoria Oil & Gas Plc is an emerging market natural gas utility and independent oil and gas exploration and production company with producing assets in Africa and exploration assets in the Former Soviet Union. The Company's principal assets are a 95% interest in the Logbaba gas and condensate project in Cameroon and 100% interest in the West Medvezhye project in Siberia, Russia. Logbaba is located in Douala, the largest city and industrial capital of Cameroon. The field was discovered in the 1950s when all four exploration wells drilled at the time encountered gas. The Company drilled two successful development wells in 2009/10 and was awarded an Exploitation Licence in April 2011.
The Company's Logbaba natural gas and condensate field is estimated to hold sufficient proven and probable reserves to supply an average of 30 mmscf/d for the next 20 years to industrial customers. Under current management projections, the Company forecasts industrial gas demand to rise to 44 mmscf/d along the current and planned pipeline expansion route. In the next 18-24 months, the Company will continue meeting the known demand of contracted customers and connecting them to the Company's infrastructure to generate increased sales and revenues. The Company has signed gas sales agreements with industrial customers to serve their energy requirements and anticipates in excess of 40 customers over the medium term. In the longer term, the Company will investigate the potential opportunity to supply natural gas to large gas-fired power stations connected to the grid, with VOG either investing in an independent power producer joint-venture or selling the gas to third parties.
West Medvezhye is situated in the prolific Yamal-Nenetsk hydrocarbon region in Siberia. An independent audit, carried out by Mineral LLC in 2011, estimated prospective resources for the area of over 1.4 billion barrels of oil equivalent ('boe'). The Company also has a discovery well, well-103, with C1 and C2 reserves, independently assessed under the Russian classification convention of 14.4 million boe as approved by the Russian Ministry of Natural Resources.
Development studies are in progress to commercialise the well-103 discovery and prospective resources and a detailed well design study for the upcoming drilling campaign has commenced. The Company is running a limited auction process which is progressing in a timely manner and the Company remains positive with regard to a satisfactory outcome before the end of December 2013.