Victoria Oil & Gas Plc (Victoria) has become a significant domestic energy supplier in Africa through its wholly owned subsidiary: Gaz du Cameroun S. A. (GDC).
With operations located in the industrial port-city of Douala, Cameroon, customers are converting their operations to take natural gas supplied by our production wells and pipeline infrastructure.
GDC is the sole gas supplier in the area, providing a cheaper, more efficient, reliable, and cleaner energy alternative to Heavy Fuel Oil use.
Our teams of engineering advisors are on hand to help customer’s cost and implement the change to GDC’s energy products.

Victoria Oil & Gas is traded in the NEX Exchange HERE

Link-HISTORICAL NEWS,VIDEO/AUDIO & EVENTS

Link-Dedicated Posts for:
Gaz du Cameroun S.A. (“GDC”)
Gaz Du Cameroun Matanda S.A. ("GDC Matanda")

Link-Cameroon-Industrialisation Master Plan (PDI) & Africa Energy

NEWS

21st Jan 2019 Production Update
17th Jan 2019 Q4 2018 Operations Update
02nd Jan 2019 Presidential Decree on Matanda Received
24th Dec 2018 Renewal of Long-Term Gas Supply Contract with ENEO
28th Sep 2018 INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2018
17th Aug 2018 Q2 2018 Operations Update
22nd Jun 2018 Report and Accounts to 31 December 2017
14th Jun 2018 Restructure of the BGFI Debt Facility
04th Jun 2018 Notice of Annual General Meeting
04th June 2018 Logbaba Field Reserves Update
24th May 2018 Q1 2018 Operations and Outlook
16th Feb 2018 Q4 17 Operations Update & 2018 Outlook Replacement
05th Jan 2018 Gas Supply Contract with ENEO Not Extended



VIDEO/AUDIO

21st Jan 2019 Victoria Oil & Gas looks ahead to increased cash flow
24th Aug 2018 Victoria Oil & Gas confident of resolving ENEO contract 'within weeks'
22nd Apr 2018 Video from 21/04/2018 UK Investor Show
16th Feb 2018 Victoria Oil & Gas confident of positive outcome to ENEO issue
08th Nov 2017 Victoria Oil & Gas reports very pleasing initial results from La-108
31st Oct 2017 21 Oil and Gas - African Power Panel
30th Oct 2017 121 Oil & Gas Investment
26th Oct 2017 Victoria Oil & Gas raises US$23.5mln to accelerate new growth programme
26th Sep 2017 Victoria Oil & Gas to finalise long term supply contracts after first gas at LA-107
17th Aug 2017 Victoria Oil & Gas expecting La-107 to be a 'substantial' producer
16th Apr 2017 Video from 01/04/2017 UK Investor Show
13th Apr 2017 'It's been a terrific year and a great quarter', says Victoria Oil & Gas' Kevin Foo
06th Mar 2017 Farm-out deal 'a really good strategic move' for Victoria Oil & Gas, says chairman Kevin Foo
06th Feb 2017 Chairman runs Proactive through the good start to 2017

EVENTS

28th Jun 2018 Annual General Meeting ("AGM")
10th May 2018 Africa Oil & Power Investor Forum-London
21st Apr 2018 UK Investor Show
11th-12th Apr 2018 Africa Investment Exchange: Gas (AIX: Gas 2018)-London
09th-10th Nov 2017 The Cameroon Investment Forum(CIF)-Cameroon
30th-31st Oct 2017 121 Oil & Gas Investment-London
23rd-27th Oct 2017 Africa Oil Week 2017-Cape Town South Africa
07th Sep 2017 One2One Investor Forum - London
05th Sep 2017 Oil Capital Conference-London
28th Jun 2017 Annual General Meeting
01st Apr 2017 UK Investor Show
9th Feb 2017 Presentation slide show for One2One
9th Feb 2017 One2One Investor Forum - London

Social Media
    

I'll keep this post updated to give a insight into VOG's progress in Cameroon (See Post 95 for previous updates):

Building Energy Sales Within a Thriving African Economy

VOG has created a gas utility business, GDC, 60% owner and operator of the Logbaba gas project, that manages all gas supply stages from extraction to customer connection. The project has onshore gas reservoirs in Cameroon to provide the industrial region of Douala with cost effective, clean and reliable energy solutions. The Company is focused going forward on a “pure gas” sale model, delivering a consistent cleaner fuel source to a diverse range of markets and applications. GDC has successfully proved first concept of gas conversion to power and is now working with equipment suppliers and potential joint venture partners to provide energy solutions.

Current Products

GDC maximises its gas production through sales across a range of varied uses. With a significant central pipeline network established in Douala, GDC’s engineering team helps design and install necessary conversion systems or power connections for new gas users. Douala city in Cameroon is currently in a period of economic expansion. GDC supports regional economic expansion by ensuring consistent gas supply for thermal and power uses.

Grid Power

Supply of gas to state power operator ENEO’s power stations for the generation of 50MW of electricity to the national grid. Modular generation sets supplied and run through equipment partners Altaaqa Alternative Solutions Projects DWC-LLC (“Altaaqa”). A “pure gas” supply solution within the main Douala network. ENEO have advised GDC of their need to supply 50-80MW of additional power to the Douala grid for each of the next five years.

In addition to ENEO, other grid power suppliers have plans to convert existing power stations to gas from GDC if the supply is available. Consequently GDC is examining expansion plans for the existing gas processing plant and evaluating limits to pipeline capacity. Importantly, it is also planning for reserves expansion in 2016 through its proposed drilling programme.

Thermal

GDC supplies gas to customers for thermal use in boilers, process plants and furnaces. The core customers are those in medium to heavy industry.

Gas condensate

Gas condensate, a by-product of the production of natural gas, is used as a cleaner and solvent, lantern and stove fuel and as a premium product in heavy oil production. Condensate can be taken by road tanker to various parts of the country. 29,700 barrels were produced during the period. Post-period, with significant levels of gas now being supplied to customers, condensate production levels will rise. GDC is examining alternative uses of condensate as with an API gravity of 43, it is close to diesel quality and could command a higher premium.

Retail Power

Gas supplied to dedicated 1.5MW gas-fired electricity generators (“Gensets”) for customers’ factories and plants became a key part in demonstrating the ability of GDC to drive power using gas. This current business is likely to move to a “pure gas” supply.

Future Products

Following a period of significant sales expansion we have realigned our focus on reserves and production expansion. New seismic programmes are being undertaken, with a twin-well campaign aimed at increasing reserves scheduled to begin at the Logbaba gas and condensate project in the first half of 2016. With the purchase of the gas processing plant from Expro, GDC is well positioned to adapt the plant to enable it to potentially double its capacity to approximately 40mmscf/d and supply new product types.

Compressed Natural Gas (“CNG”)

GDC is in discussion with a preferred supplier for the provision of a CNG solution, whereby the supplier will finance and install all gas compression and logistical operations. This model will preserve GDC’s strategy of concentrating on gas sales rather than downstream development. The potential benefits of CNG are:

•Widens our customer radius enabling operations up to 300km from Douala to be provided with our gas;

•High margin business for “pure gas” supply model;

•No capacity pressure on pipeline;

•CNG production can also occur during off-peak periods to help maintain balanced gas production; and

•Minimal GDC capital requirement.

Liquid Petroleum Gas (“LPG”)

Market research and technical studies are being undertaken to establish whether there is a commercial opportunity for GDC to expand into this market.

http://www.victoriaoilandgas.com/gaz-du-cameroun

The pie chart has been updated recently too:

20 January 2016
Victoria Oil & Gas Plc
("VOG", "Group" or "the Company")

Q4 2015 Operations Update

Victoria Oil & Gas Plc provides this update on the Group's operations for the three month period ended 31 December 2015 (the "quarter" or "Q4"). The Company has changed its accounting reference date from 31 May to 31 December and will be presenting its next audited results for the seven month period ended 31 December 2015 by the end of May 2016. The change of accounting reference date will align the financial reporting calendar with future quarterly operational updates. Today's quarterly results contain an enhanced level of financial detail and operations analysis including unaudited revenue and net cash, and supply statistics.


Highlights

· 7.1mmscf/d Q4 average gas production (Q3 2015: 8.2mmscf/d)

· 73% increase in production average compared to Q4 2014 (4.1mmscf/d)

· Maintained customers and prices despite adverse market conditions

· 625.6mmscf gas sold Q4 2015 (Q3 2015 717.7mmscf)

· 2,867.7mmscf of gas sold for the 12 months to 31 December 2015 (1,271.7 mmscf for the 12 months to 31 December 2014)

· The 14 days to 17 January 2016 produced an average production of 15.3mmscf/d with a peak of 16.6mmscf/d

· Group Q4 unaudited financial highlights

o $7.6m revenue (Q3 2015: $9.0m)

o $13.1m cash position (Q3 2015: $12.8m)

o $5.9m net cash position (Q3 2015: $4.9m) *

*net cash is defined as cash equivalents less borrowings

Overview

The period marked the third quarter of supply to ENEO and overall production was in line with expectations based on known seasonal fluctuations in gas demand. The continual erosion of the global oil price however has had minimal effect on the Gaz du Cameroun SA ("GDC") business in terms of gas price changes or customers changing back to oil.

The quarter covered the second half of the wet season where gas consumption in the grid power sector is lower due to higher availability of hydroelectric power. Average daily production was 7.1mmscf/d during the quarter of which 3.4mmscf/d was attributable to grid power.

Importantly, GDC has maintained customers at their contracted prices and these prices, which are not tied to oil, distinguish us from other junior oil and gas companies. Despite the large drop in the oil price both internationally and locally, GDC maintained its selling price for gas. This ranged between $9 to $16 per mmbtu or a weighted average price of more than $60/BOE. Our customers have stayed with gas because it is a reliable, clean and conveniently available source of energy that leaves a much smaller carbon footprint than alternatives.

January marks the return to the dry season and associated higher gas utilization, with the grid power sector now recording consistent consumption in excess of 9.0mmscf/d. The increase in consumption is due to the take-or-pay terms with ENEO, the national power joint venture entity with Actis, whereby minimum consumption levels are split into six-month periods covering the dry (January- June) and wet (July - December) seasons.

Operational update

The quarterly gas and condensate consumption is as follows:

****SEE LINK AT BOP****

http://www.moneyam.com/action/news/showArticle?id=5196249

CONTINUED

Thermal gas sales remained reasonably consistent with previous quarters and management expects this to continue until the capital expansion projects described below are completed. These projects will allow for the addition of further thermal and retail power customers.

Grid power consumption is expected to increase significantly during the first half of 2016. The 14 days to 17 January 2016 produced an average total production of 15.3mmscf/d with a peak of 16.6mmscf/d.

Condensate sales are a by-product of the gas production process and volumes sold are expected to reflect the volumes of gas produced.

Our drive in 2016 is to ensure there is sufficient capacity to bring on major new customers by increasing reserves, plant capacity and pipeline reach. At present the production plant capacity is constrained at 20mmscf/d. In addition, finding flexible new applications such as CNG that can add capacity for our existing markets remains a priority.

GDC, as holder of the Group's 60% participating interest in the Logbaba concession, is currently entitled to 100% of the revenue generated by the Logbaba project. The concession agreement provides for this allocation of revenue to continue until gross revenues equal the initial exploration costs incurred in the drilling of the two operational wells. Management expects that this point will be reached during the first half of 2016. Thereafter revenues will be split in accordance with the participating interests, which will impact the revenues and profitability attributable to GDC.

GDC Chief Executive Officer and VOG Director Ahmet Dik said:

"Our business continues to prove its resilience despite a challenging macro environment, delivering another strong production performance when set against the comparative period last year. Looking ahead to 2016, our focus is on increasing capacity to service a larger, more diversified customer base. We believe that through the continued delivery of safe, clean, reliable and accessible sources of energy from our gas, VOG can continue to strengthen its position as a provider of choice."

http://www.moneyam.com/action/news/showArticle?id=5196249

Victoria Oil & Gas chair confident of production performance in 2016 (Video)
16:21 20 Jan 2016

Kevin Foo, chairman of Victoria Oil & Gas (LON:VOG) says the firm is ready to sell as much gas as customers are willing to take in Cameroon.

The gas supplier saw volumes jump by three-quarters in its latest quarter as supply deals with local businesses and power group ENEO ramped up.

The group supplied 7.1mmscf (mln cubic feet) per day from the Logbaba field in the three months to December, compared to 4.1mln a year earlier.

Production has now picked up again with the advent of the new dry season, Foo added, and ran at an average of 15.3mln cubic feet daily over the past two weeks.

In Cameroon, Victoria Oil & Gas withstand adverse economic conditions, but challenges abound
Friday, January 22, 2016

(Ecofin Agency) - Gas Cameroon, Douala based subsidiary of the British gas junior Victoria Oil & Gas, achieved respectable performance over the first 17 ​​days of 2016, reaching an average production of 15.7 million cubic meters of gas per day, with peaks of 17 million cubic meters of gas per day.

An improvement that should strengthen the management of the company after a fourth quarter 2015 less efficient than the previous two. Although she was up compared to Q4 2014, the production of this period was 7.1 million cubic meters per day, against up to 8.2 million cubic meters per day. More positive indicators are reassuring on the performance of the fourth quarter of 2015. The company achieved cash inflows of $ 13.1 million and has a net cash of $ 5.4 million. Its customers continued to pay a constant price throughout the period and prospects for expanding customer base are always positive.

Gas Cameroon is in a market where the global energy gap, especially felt in Douala, representing a market share not served by hydropower 25%, which is essentially filled by thermal power plants to fuel oil or gas.

With the rising price of oil to nearly $ 110, the gas option was presented as a coherent and solid alternative. International background of this raw material is characterized by a decline in prices makes the use of heavy fuel competitively again. Moreover, the alternative energy market in Cameroon, is very often influenced by periods of high consumption dry season and the rainy season to more reduced consumption.

Moreover, Cameroon continues with the gradual filling of its regulator Lom Pangar dam, a book that should help limit the effects of seasonal variations on the river early and allow more consistent hydropower. But the power grid still dilapidated country generates losses estimated at 35%, which does not change much to the energy gap in a market where demand increases from 7% a year.

But even if the market will remain interesting, the revenue outlook for Victoria Oil and Gas, which is the majority shareholder of GDC with only 60% of the capital, will be modified by the end of the first half. According to the concession contract, VOG has all of the proceeds from the sale, until their number reaches that of all expenditure for digging wells operating. The company's leaders hope to see this figure reached during the first half of 2016. After that, revenues and net profits that will result, will now be recognized in the amount of only 60% the rest being allocated to other shareholders Gas Cameroon.

Companies vs. #Commodities – @stanchart’s Paul Horsnell & Kevin Foo on the company’s managing the commodities slump (audio)
22nd January 2016

The oil markets continue to take a battering. This week the price sank to $27 a barrel, dropping further ahead of U.S data expected to show a further increase of oil supplies. While many operators are struggling and future projects being shelved, there are some players that are seemingly managing to cope with the commodities crash. Matt Cox speaks with Paul Horsnell, Head of Commodities Research at Standard Chartered, and Kevin Foo, Chairman at Victoria Oil and Gas.

28 January 2016
Victoria Oil & Gas Plc
("VOG" or "the Company")

Operations Outlook 2016

Victoria Oil & Gas Plc today provides a 2016 Operations Outlook for VOG and Gaz Du Cameroun S.A ("GDC") the Company's wholly-owned subsidiary and operator of the 60% owned Logbaba Gas Project in Cameroon. GDC has successfully developed the first industrial gas for sale into the Cameroon energy market and is now supplying a variety of different customers.

2015 was a successful year which saw GDC more than double 2014 production and become cash generative. GDC is beginning 2016 with average daily gas production rates in excess of 15mmscf/d and a primary objective to exceed 3.7 Bcf of annual production, which is a 30% increase over 2015 supply.

As a revenue generating, fully integrated gas utility, we are neither exploring for, nor producing oil as a primary product. We therefore believe we are well insulated from the turmoil in the oil market. GDC has maintained most customers at contract prices from $9 to $16 per mmbtu.

The key corporate and operational objectives for the Group for 2016 are to:

Enhance Production Capability

· Increase gas supply to customers by 30% over 2015 levels

· Successfully complete a two well drilling program for expansion of gas reserves

· Complete designs for increasing the gas treatment plant capacity to 40mmscf/d

Expand Customer Base for Increased Capacity

· Add over 13km to our pipeline network by building in new industrial areas such as Bonaberi and the Douala Port Area

· Progress new market products such as Compressed Natural Gas (CNG)

Corporate Objectives

· Continue to reduce production and overhead costs across the Group

· Consolidate our advantage as a fully integrated gas utility in Cameroon by actively seeking additional sources of gas via acquisition, joint ventures or corporate deals

· Fund capital projects through revenues, partner contributions and debt

· Expand business development efforts into other parts of Africa, leveraging the successful Cameroon model

· Distinguish the Groups business and operational successes from other companies in the oil and gas sector so that the Company attracts an appropriate equity market valuation

· Continue to enhance reporting, transparency and corporate governance

VOG Chairman Kevin Foo said:

"In 2015, VOG came of age in terms of operational and financial performance. In 2016 we are focused on exceeding the record production we achieved last year. Despite the massive fall in the price of oil, GDC has protected its customer base and maintained its gas prices at $9 to $16/mmbtu, which reflects the true value and convenience of Natural Gas. We expect success from the two well drilling programme this year and are very focused on continuing to build the Group as a significant energy provider in Cameroon and beyond."

Cameroon Energy Market

Cameroon continues to evolve as a key African economy with the industrial port of Douala a key import and export gateway for goods to most of Central and West Africa. Power deficits remain a major hindrance to Cameroon's economic expansion, with demand increasing 7% annually. Power remains high on the political agenda. Grid power is heavily reliant on seasonal hydroelectric dams to supply 75% of demand and the shortfall is made up from heavy fuel oil and gas. Gas is seen as a key element of the national energy strategy.

The Logbaba gas and condensate project is a rare example of successful onshore gas monetisation in Sub-Saharan Africa, with energy provision clearly aligned with the national interests: GDC has successfully unlocked Cameroon's gas for industrial use. GDC estimates demand for gas in the Douala area for thermal and power generation to be in excess of 150mmscf/d and is focused on growing production to help meet this demand.

2016 Operational Outlook

Expansion of gas reserves to feed expanding market

GDC will be drilling two new wells on the Logbaba concession in 2016, with spudding of the first well anticipated by mid-year. Both wells will be drilled on the current Logbaba site with well LA107 a twin of well LA104 (previously drilled in the 1950's) and well LA108 a step out well adjacent to known formations.

To supplement our in-house expertise, SPD Petrofac has been engaged as project consultants to help complete the well programme and planning is advanced with a suitable rig secured. Whilst drilling onshore Cameroon is more expensive than in established gas production regions, GDC is taking advantage of the current slump in the hydrocarbon services market to ensure the most cost effective and efficient programme is implemented. The insight and lessons learned from the 2009-2010 drilling programme were invaluable and this expertise has been used to design a programme that is both safe and maximises our chance of success. Our aim is to complete drilling by the end of 2016 and we expect to add new reserves as well as transfer 2P reserves to the 1P category. Further updates will be made as appropriate.

Plant expansion for higher levels of gas/condensate processing

In the first half of 2016, GDC proposes to finalise designs to expand the Logbaba gas processing plant to provide increased capacity. Expansion of the gas processing plant is necessary to allow us to process the increased production expected from the drilling programme and pipeline expansion into the Bonaberi area.

Expro International BV has been engaged to complete a study on the design and costs to increase the capacity of the processing plant over three stages to 40mmscf/day. Stage 1, which will expand capacity to 25mmsc/d, is expected to be completed in 2016. GDC has received the initial reports on the options available. The next phase is to provide a cost and schedule that ties into the expansion phase of the project from the gas supply side.

Expansion of the pipeline network into new commercial areas and customers

The expansion of the pipeline network into Bonaberi will allow us to access industries that need room to expand or build away from the crowded Douala environment.

Before the drilling program is completed, GDC expects to have Phase 2 (8km) commissioned and Phase 3 (5.5km) of the Bonaberi pipeline underway. This will provide access to a number of new customers and GDC has signed 12 new Gas Supply Agreements for businesses on the proposed pipeline. S.C.R. Maya & Cie (Maya Oil) are located at the end of the phase of this expansion and are expected to be a significant consumer of gas estimated at 0.3mmscf/d.

GDC continually engages with potential new users to ensure future growth and continues to monitor the market for opportunities to expand the distribution network and alternate delivery systems such as CNG.

Gas to Power

GDC will continue to build on its relationship with ENEO, Cameroon's national electricity generating company. GDC has been successfully providing gas to ENEO at the Bassa and Logbaba power stations in Douala since March 2015. Discussions are continuing with ENEO and others to supply additional gas to power projects.

Geographic Expansion

VOG is fully committed to expanding its business within the African continent. The success of GDC has demonstrated that monetisation can be achieved with the right model in place. The meeting of energy demands is a key building block towards successfully developing robust and stable economies. In 2016 VOG intends to implement a comprehensive strategic plan to target other jurisdictions within Africa.

Corporate


Our change in financial reporting period to end December will come into effect this year. Aligning our financial reporting to the calendar year is a more logical fit with our operational updates and the seasonality of demand.

During 2016, GDC will enter a new phase of the Logbaba Project where gas and condensate revenues, which to date have fully accrued to GDC, will be split in accordance with the participating interests.

We will continue to fund our capital projects via a combination of strong and established operational cash flows, partner contributions and debt.

Recently, the VOG Board made several organizational changes which will support the Company's vision for 2016 and beyond. Ahmet Dik joined the Board and will become the CEO of VOG in due course. Additionally, Iain Patrick was appointed as Non-Executive Director and the Company is in discussions with a potential third Non-Executive Director.

http://www.moneyam.com/action/news/showArticle?id=5201556

Victoria Oil & Gas aims to raise output 30% in 2016
09:22 28 Jan 2016
Philip Whiterow

Subsidairy Gaz Du Cameroun operates and has a 60% stake in Logbaba



Victoria Oil & Gas (LON:VOG) expects to increase gas supply to customers around the Cameroon city of Douala by 30% in 2016 and drill two new wells on the Logbaba field.

Subsidiary Gaz Du Cameroun operates and has a 60% stake in Logbaba, from which it has started to supply gas to business customers in and around Cameroon’s rapidly growing second city.

Production is currently running at 15mmscf/d and a 'primary objective' in 2016 is to exceed 3.7 Bcf of annual production, a 30% increase over 2015.

Infrastructure plans include designs for the gas treatment plant capacity to rise to 40mmscf/d, adding 13km to the pipeline network and to develop new product areas such as Compressed Natural Gas (CNG).

Kevin Foo, chairman, said: "In 2015, VOG came of age in terms of operational and financial performance.

“In 2016 we are focused on exceeding the record production we achieved last year.

"Despite the massive fall in the price of oil, GDC has protected its customer base and maintained its gas prices at $9 to $16/mmbtu, which reflects the true value and convenience of Natural Gas.

“We expect success from the two well drilling programme this year and are very focused on continuing to build the Group as a significant energy provider in Cameroon and beyond."

From yesterday:

Victoria Oil & Gas

Hot on the heels of its trading update VOG has announced a 2016 operations outlook. The target for 2016 production is 3.7 BCF which would be a 30% increase on last year. Most gas is contracted at $9-16 mmbtu and the company point out that as no oil is explored or produced as a primary product. Indeed the company are keen to ‘enhance the market valuation’ by ensuring that it is seen as a gas utility in a fast growing market full of growth from a number of quarters. With two exploration wells, new products such as CNG and a continued war on costs I tend to agree that the market has got this one wrong, which means I guess, that Mr Hart or someone similar should bid for VOG which has only a market cap of £33m….

Malcolm Graham-Wood (Malcy’s Blog above) has over the years been positive about VOG and still is......in a fashion!

As it is very strange that in the following from the 'Tip TV Finance Show' discussing the 'best oil stocks to watch for the year ahead' he come out with "The market doesn't trust the management one bit", strong opinion from Malcolm indeed!

Anyway:

Published on 11th February 2016

Oil Bucket List for 2016 (Tip TV Finance)



Posted on 12th February 2016

TipTV interview: Oil Bucket List for 2016 (Malcy’s Blog)

Victoria Oil and Gas secures 75% of Matanda Block

StockMarketWire.com

Victoria Oil and Gas has reached an agreement with Glencore Exploration Cameroon Ltd and Afex Global Ltd on the Matanda Block, a large hydrocarbon licence in Cameroon.

The terms of this agreement include the assignment by Glencore Cameroon of its 75% participating interest in the Matanda Production Sharing Contract (PSC) to VOG, and VOG becoming Matanda's operator through its 100% owned subsidiary, Gaz Du Cameroun Matanda S.A. (GDC Matanda).

As consideration for the assignment, VOG or its subsidiaries will assume responsibility for carrying out a Work Programme to be agreed by the Government of Cameroon.

The assignment is conditional on this being agreed and other customary approvals from the Government of Cameroon.

Matanda covers an area of approximately 1,235 square kilometres and is highly prospective for significant natural gas and gas condensate resources.

http://www.moneyam.com/action/news/showArticle?id=5215661

18 February 2016

VOG - Interest in Matanda Block in Cameroon

Highlights

•VOG secures 75% of 1,235 square kilometre Matanda Block PSC adjacent to current Logbaba gas production operations
•North Matanda Field estimated to hold an estimated P50 ‘gas-in-place’ volume of 1.8 Tcf and ‘condensate-in-place’ of 136 Mmbbl
•Matanda block is over 60 times area of Logbaba concession
•Assignment subject to Government approvals including Work Programme
•Further seismic development work scheduled for Q4 2016
•Matanda forms part of VOG’s expansion strategy to meet Cameroon’s growing energy demand

Victoria Oil & Gas Plc, the integrated natural gas producing utility, is pleased to announce that it has reached an agreement with Glencore Exploration Cameroon Limited (“Glencore Cameroon”) and Afex Global Limited (“AFEX”) on the Matanda Block (“Matanda”) a large hydrocarbon licence in Cameroon. The terms of this agreement include the assignment by Glencore Cameroon of its 75% participating interest in the Matanda Production Sharing Contract (“PSC”) to VOG, and VOG becoming Matanda’s operator through its 100% owned subsidiary, Gaz Du Cameroun Matanda S.A. (“GDC Matanda”).

As consideration for the assignment, VOG or its subsidiaries will assume responsibility for carrying out a Work Programme to be agreed by the Government of Cameroon. The assignment is conditional on this being agreed and other customary approvals from the Government of Cameroon.

Matanda covers an area of approximately 1,235 square kilometres and is highly prospective for significant natural gas and gas condensate resources.

Glencore Cameroon is currently the operator of the PSC, with a 75% participating interest and AFEX, a Bermuda based exploration and production company specialising in West Africa, holds a 25% participating interest. Under the assignment GDC Matanda will hold a 75% participating interest in the PSC and AFEX will have a 25% participating interest in the PSC. GDC Matanda and AFEX will initially focus on prospects in the onshore licence area located within a few kilometres of the adjacent Logbaba area and its existing pipeline network that is currently operated by GDC.

GDC Matanda and AFEX will submit a new work programme to the Government of Cameroon for approval and expects to commence its first phase of seismic data acquisition in Q4 2016. The assignment of the PSC complements the Group’s current development activity at Logbaba, including the previously announced new drilling programme of one twin and one-step out well scheduled for 2016, by securing a significant additional resource base. The existing Logbaba gas network infrastructure will also allow for fast-track development of any new discoveries made on Matanda to deliver additional natural gas to local industrial users in Cameroon.

Kevin Foo, Chairman, said: “This is a very exciting and fulfilling acquisition for VOG and its expansion plans. The North Matanda Field has considerable potential and we believe is an extension of the Logbaba structure and at 1,235 square kilometres, the block is over 60 times larger than our existing concession. VOG has worked closely with AFEX, Glencore Cameroon and SNH, the Cameroon national oil company, to bring this opportunity to a successful conclusion. We believe the assignment and operatorship of the Matanda block is a major step towards allowing the Group to meet the growing energy needs of the Cameroonian economy.

Development of Matanda will be built on the excellent foundation established by Glencore Cameroon and AFEX. We believe that the three wells drilled in the North Matanda Field and the extensive 2D and 3D seismic data shows a strong geological continuation between the Logbaba and North Matanda Fields. Tests from the NM-1x, 2x and 3x wells proved a rich condensate yield varying from 30 bbl/mmscf to more than 70bbl/mmscf. The assignment and development of Matanda is consistent with our strategy to provide clean and reliable energy to industrial users in Cameroon.”

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 Cameroon 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 Cameroon spudded well NM-3x, an appraisal well into the North Matanda Field to further define and delineate the Cretaceous reservoirs. The NM-3x well was completed in October 2013 and studies based on its results have concluded that the North Matanda Field extends to the onshore area of the block and continues towards the boundary of Logbaba, and that significant potential exists for large-scale gas reserves in this field.

In 2011 and 2014 ERCL, an independent specialist in upstream oil and gas consultancy, reviewed the Operator’s estimates of resources for the North Matanda Field based on the new data from the NM-3x well and concluded that the P50 ‘gas-in-place’ volume of 1,864 Bcf with ‘condensate-in-place’ of 136 Mmbbl were valid estimates for the area inside the Matanda 3D seismic survey.

NM-3x drilled deeper than the previous North Matanda wells and discovered new, deep gas reservoirs, which are not included in the above volume resource numbers. Following assessment of extensive drill logs and geophysical data by Afex, both Afex and VOG believe that significant potential exists for large-scale gas reserves in this field.

Additionally, it is thought that the North Matanda Field extends to the onshore area of the block.

The Matanda block also contains additional Cretaceous prospects and Tertiary prospects that offset the Moambe and Zingana discoveries drilled in 2015 by Bowleven Plc. in the adjacent Bomono concession. Matanda is located between the onshore blocks of Logbaba and Bomono concession and the offshore block of the Etinde concession. Gas has been discovered at all six wells drilled at Logbaba and in two new exploration wells currently under test by Bowleven Plc. at Bomono. The Etinde concession, operated by New Age (African Global Energy) Limited, has 2C gas and condensate resources of 345 Mmboe.

Victoria Oil lands major asset in Cameroon in expansion drive
08:21 18 Feb 2016
Philip Whiterow

The Matanda block is over 60 times larger than the Logbaba concession



Victoria Oil & Gas (LON:VOG) has made a major expansion move in Cameroon by taking a 75% stake in the propsect neighbouring its Logbaba gas field.

The Matanda block is over 60 times larger than the Logbaba concession, with the North Matanda field estimated to hold 1.8Tcf of gas and 136mln barrels of condensate on a p50 basis.

Glencore Cameroon is currently the operator, but the agreement will see it assign its 75% interest and the operator responsibilities in the block to Victoria.

In return, Victoria will undertake a work programme to be agreed by the Cameroon government. AFEX, a Bermuda-based resource group, will retain its 25% participating interest.

Exploration initially will focus on the onshore licence area located within a few kilometres of Logbaba and its existing pipeline network operated by GDC, Victoria’s Cameroon subsidiary.

Kevin Foo, Victoria’s chairman, said it was a very exciting and fulfilling acquisition for the company.

“We believe the assignment and operatorship of the Matanda block is a major step towards allowing the group to meet the growing energy needs of the Cameroonian economy.

The North Matanda Field is an extension of the Logbaba structure, he added, and three wells drilled in the North Matanda Field and the extensive 2D and 3D seismic data shows a strong geological continuation between the two.

“Tests from the NM-1x, 2x and 3x wells proved a rich condensate yield varying from 30 bbl/mmscf to more than 70bbl/mmscf.”

One post is enough MAM!

Victoria Oil & Gas' chairman "very excited" about Matanda block
13:22 18 Feb 2016

Victoria Oil & Gas' (LON:VOG) chairman Kenvin Foo tells Proactive Investors he is "very excited" about the Matanda block in Cameroon, a prospect neighbouring its Logbaba gas field, in which the company has taken a 75% stake.

He says the gas potential there is "quite magnificent" as tests conducted during the 80s indicated significant gas potential and gas flows when two wells were tested. Then Glencore, the previous owner of the Matanda stake, conducted a lot of seismic assessment work and one well also showed gas.

Foo adds the company has a long way to go to meet the energy demands of the neighbouring city of Douala.

The link below is for the 'Afex Global Limited' website regarding the Matanda Block before Gaz Du Cameroun Matanda S.A. (“GDC Matanda”) took over from Glencore:

http://afexglobal.com/operations/cameroon

Does it make sense to buy oil assets with the price of crude so low? Kevin Foo of Victoria Oil & Gas explains (Audio)

With the price of crude so low, you can only wonder who is going to buy the vast array of unproven production assets now being put up for sale all over the world. Even if supplies can be extracted, the question is, can they ever turn a profit?

African based company Victoria Oil & Gas believes it does make sense to buy assets while other producers are rapidly selling. Victoria recently secured a 75% interest in Matanda Block in Cameroon from Glencore. But with Tullow Oil seeing its shares drop, why did Victoria Oil & Gas decide to go for it? Matt Cox spoke to the chairman of the company Kevin Foo.