TIDMVOG
RNS Number : 8678L
Victoria Oil & Gas PLC
02 January 2019
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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END
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