TIDMVOG

RNS Number : 3009G

Victoria Oil & Gas PLC

24 November 2020

24 November 2020

Victoria Oil & Gas Plc

("VOG" or "the Company")

Ministerial Approval on Matanda Licence Extension 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, as operator, approval from the Minister of Mines, Industry and Technological Development for the extension of the Matanda Block licence.

The exploration phase of the licence has been extended by one year from 17 December 2020. This has been approved by the Minister and a Presidential Decree will follow in accordance with the regulations in due course.

GDC was assigned 75% ownership and became operator of the Matanda PSC in December 2018 with Afex Global Limited ("AFEX") holding the remaining 25%. Société Nationale Des Hydrocarbures ("SNH") has a 25% back in right after an Exploitation License is granted. The 1,235 square kilometre block Matanda Block is adjacent to GDC's Logbaba concession, offering an easy monetisation route for gas discoveries.

The project has progressed well in the first two years of GDC's involvement, and notably in July 2020 the Company was pleased to report a material increase in management's estimate of Prospective Resources, onshore Matanda. Gross unrisked, mean Prospective Resources increased to 1,196 Bcf in the Matanda Licence (onshore) from the previously reported 903 Bcf (ERCL Consultants Evaluation: 'Prospectivity and Volumetrics Report, Matanda Block, Cameroon', 2017).

This increase was the result of a detailed internal prospect evaluation which identified 19 gas prospects in shallower Tertiary-aged reservoirs, plus 7 prospects in deeper, Cretaceous-aged prospects. The Company believes the larger of these prospects has mean unrisked, Prospective Resources of over 65 Bcf, with geological Chance of Success estimated at better than 40%.

This year, the Company has been carrying out the all-important Environmental and Social Impact Assessment ("ESIA"), an exercise which included engagement with local communities, and one that also demonstrated that we can access all areas of the licence, noting that the license is not densely populated and consists mainly of plantations and mangrove forests. This ESIA is scheduled for completion in Q1 2021 and will ensure that all aspects of risks to the environment and social factors will have been assessed and necessary precautions taken, in accordance with the requisite rules and regulations, to guarantee minimal impact on the environment ahead of drilling preparation. The work programme requires the drilling of an exploration well and the company will shortly be finalising the ranking of the significant onshore prospects.

Commenting today Roy Kelly, CEO of VOG, said :

"We are extremely pleased to have received this extension for one year. The first well will undoubtedly be in the onshore area where nearby wells in the Bomono license have derisked the shallower plays, and proximity to the GDC-operated gas distribution infrastructure allows easier monetisation of discoveries. We are further encouraged by the ESIA that will soon be completed. We thank the Minister and also SNH for expediting this extension."

For further information, please visit www.victoriaoilandgas.com or contact:

Victoria Oil & Gas Plc

Roy Kelly/Rob Collins Tel: +44 (0) 20 7921 8820

Strand Hanson Limited (NOMAD)

Rory Murphy/James Dance/Jack Botros Tel: +44 (0) 20 7409 3494

Shore Capital Stockbrokers Limited (Joint Broker)

Mark Percy / Toby Gibbs (corporate advisory) Tel: +44 (0) 207 408 4090

Jerry Keen (corporate broking)

Camarco (Financial PR)

Billy Clegg Tel: +44 (0) 20 3772 2499

Nick Hennis Tel: +44 (0) 203 781 8330

Sam Metcalfe, the Company's Subsurface Manager has reviewed and approved the technical information contained in this announcement in his capacity as a qualified person under the AIM Rules. Sam has over 30 years of industry experience, and has an MSc in Petroleum Engineering from The University of Texas at Austin.

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 wells drilled in the shallow water of the Wourri Estuary on the block tested gas and condensate from the Logbaba Formation of the North Matanda Field. One onshore well, Missellelle-1, 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.

Figure 1. Map of the Douala & Wouri River Area showing the Matanda Block

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