Victoria Oil & Gas Plc today announces that its 100% owned subsidiary, Gaz du Cameroun S.A. ("GDC"), has made payment in full for the purchase of the Logbaba gas processing plant (“the Plant”) from Expro Worldwide BV (“Expro”). The Plant currently processes gas extracted from the GDC wells, producing condensate which is sold to a local refinery and clean natural gas which is distributed to customers through the 33km pipeline network in Douala, Cameroon.
The Plant has been purchased from Expro for US$2.578m, using cash generated from GDC operations, and the Board believes that this purchase will deliver significant cost savings. GDC is evaluating proposals for a long term contract for the operation and maintenance of the Plant with specialist service companies, including Expro.
Kevin Foo, Executive Chairman of GDC, said: “The purchase of the Logbaba plant is a key milestone for GDC, bringing with it significant cost savings which will enable us to continue to grow the business and increase shareholder value. We are now evaluating options for the Plant expansion and look forward to providing an update in due course.”
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