Victoria’s strategy is to grow into a mid cap E&P company with the development of its existing high class fields and prospects and via the acquisition of opportunistic undervalued assets, particularly in Africa and the FSU.
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Victoria also has strategic relationships with Blackwatch Petroleum Services, an international geoscience consultancy, and Geodynamics Research, developers of IPDS passive seismic technology. |
Victoria has built a combined portfolio of proven and probable reserves and prospective resources in prolific hydrocarbon producing regions of West Africa and the FSU.
A table of the Company’s net oil, condensate and gas reserves and resources as at 1.12.11 are outlined in the table below:
Victoria’s Net Proved and Probable Reserves and Resources as at 1.12.11
| Oil & Condensate (MMbbls) | Gas (Bcf) | Total (MMboe) | |
| Reserves | |||
| Logbaba Field | 4.0 | 201.4 | 37.6 |
| West Med 103 Discovery (1) | 11.8 | 15.8 | 14.4 |
| Total Reserves | 15.8 | 217.2 | 52.0 |
| Resources | |||
| Logbaba Area (2) | 19.0 | 950.0 | 177.3 |
| West Med Block (3) | 721.5 | 3,902.3 | 1,416.6 |
| Total Resources | 740.5 | 4,852.3 | 1,593.9 |
(1) Victoria’s West Med Reserves, as approved by the Russian Ministry of Natural Resources, are classified as C1 and C2 reserves according to Russian convention and are comparable to the Society of Petroleum Engineer’s Proved and Probable Western classification
(2) Blackwatch Estimate (2010)
(3) Mineral estimate (2011)
The Company’s assets are 95% of the Logbaba gas and condensate field in Cameroon and a 100% of the West Medvezhye oil and gas project in Siberia. Both assets are operated by Victoria. The Company’s producing asset is Logbaba, located in the eastern suburbs of Douala, the economic capital of Cameroon.
Victoria commenced gas delivery to industrial customers in Central Douala in December 2011. The company’s near term strategy (1 to 3 years) is to satisfy three markets with the sale of sale of natural gas.
A chart of the anticipated supply growth over the next five years is highlighted below:
As Victoria’s demand outlook increases over time, the Company will undertake further step out drilling to increase its proved reserves to satisfy demand. At present, Logbaba’s gross proved and probable reserves are sufficient to satisfy an average of 30 mmscf/d for the next 20 years.
In 2014, Victoria anticipates its next drilling campaign with a four well programme. The gas processing facilities has two x 20 mmscf/d trains and the pipeline has been sized to 60 mmscf/d at its current pressure of 5.5 barg. Production, processing and pipeline capacity can all be increased at relatively low cost as demand increases.
West Medvezhye is situated in the Yamal-Nenetsk region of Siberia, the largest gas producing region in the world and is near Gazprom’s huge Medvezhye field which has been in production since 1972 and has produced over 70 Tcf. An independent reserve audit by Degolyer and MacNaughton estimated gross prospective resources for West Med of over 1.1 billion barrels of oil equivalent. Recent studies including the Passive Seismic and Gas Tomography surveys conducted in 2010 have confirmed hydrocarbon accumulations in certain targeted areas. Victoria has recently commissioned a seismic reprocessing and geological modelling study with Mineral LLC, a Russian geosciences consulting institute to re-interpret these areas taking into account the newly integrated survey information. In February 2011, Victoria’s technical team presented the results of our 2010 work programme and outlined forward plans for this year and 2012 to the Ministry of Natural Resources in Russia. These plans have been approved and the forward programme is to drill two exploration/appraisal wells in 2012. Drilling locations will be decided once we receive the results of the study by Mineral, commissioned in March 2011 and an additional 185 km of 2D seismic which will also be acquired this year.
Victoria also has strategic relationships with Blackwatch Petroleum Services, an international geoscience consultancy, and Geodynamics Research, developers of IPDS passive seismic technology.