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Reserves Update Logbaba Gas & Condensate Project, Cameroon

20 Oct 2010
Highlights
  • Logbaba Proved Reserves increase almost five fold to 49 Bcf
  • Proved plus Probable (2P) reserves more than double to 212 Bcf
  • Prospective Resources evaluated to be in excess of 1 Tcf

Victoria Oil & Gas Plc (AIM: VOG), the oil and gas exploration and development company with assets in Cameroon and the FSU, is pleased to announce an update on its reserves and resources potential at Logbaba, Cameroon. The update was completed by Blackwatch Petroleum Services Limited, ("Blackwatch"), which act as consultants to the Company.

Logbaba is the first commercial onshore gas field in Cameroon. The field is located in the eastern part of Douala, the industrial capital of Cameroon and the seaboard hub of Central Africa and its member countries.

The Proven and Probable (2P) gas reserves in the Logbaba field are contained in Campanian and Santonian age sands of the Logbaba Formation. New structure maps were constructed based on correlations of the Logbaba sands incorporating new and old well data as well as existing seismic data. Remotely sensed imagery was acquired and analysed to provide a structural framework for Logbaba. Blackwatch has completed the Logbaba reserves review, integrating the recent well logs and well test data from the successfully drilled and completed new wells La-105 & 106 and the original four wells drilled in the 1950s by Serepca.

All six of the wells drilled in the Logbaba block to date have encountered significant gas intervals and all five wells that were tested flowed gas to surface. To date, only the Logbaba Formation gas sands have been tested. The deepest well on the block, La-104, encountered good gas shows, not only in the Logbaba Formation but also in the deeper Turonian age gas-bearing sands where the well reached a target depth of 13,688ft (4172 metres).

The updated gross Reserves potential for the Logbaba Field is highlighted in the table below. The Company holds a 60% working interest and is operator in the Logbaba Block.

Logbaba Reserves, 100% Basis (Bcf)

 

Category

 

July-2008

 

Oct-2010

Logbaba Field (10 to 20% of Block Area)

 

 

Upper Logbaba Proved Reserves (1P)

10

49

Proved + Probable Reserves (2P)

104

212

Proved + Probable + Possible (3P)

202

350

Entire Logbaba Block

 

 

Prospective Resources

n/a

>1000

 

The Company continues to sign gas supply contracts with industrial end users in Douala, including some multinational firms.  Due to the shortage of domestic gas supply and the high costs of alternative energy, VOG aims to benefit from its significant first mover advantage and capitalise on Cameroon's strategic location and growing energy demands. The Company offers a considerably cheaper source of fuel and reliability of supply to industrial users, power suppliers and liquid fuel users. Approximately 80% of the initial customer base lies within a 10km radius of the deposit and the Company forecasts that the market could grow to over 100MMscf/d within the next five years.

The Company is also actively working with the Cameroon National Oil Company ("SNH"), and the Ministry of Industry, Mines and Technology on permitting and expects the Exploitation Authorisation and other key permits to be issued in the near future. The majority of pipeline material has now been delivered to Cameroon and the Company is ready to start installation as permits are granted.

The information in this release has been prepared by Radwan Hadi, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies.  Mr. Hadi, Deputy Managing Director of Blackwatch Petroleum Services Limited is a petroleum/reservoir engineer with over 30 years experience in oil and gas exploration and production.

 

For further information, please contact:

Victoria Oil & Gas Plc

Tel:  +44 (0) 20 7921 8820 

Jonathan Scott-Barrett / Kevin Foo      

 

Strand Hanson Limited 

Tel:  +44 (0) 20 7409 3494 

Simon Raggett / Angela Peace

 

Fox-Davies Capital

Tel:  +44 (0) 20 7936 5236 

Phil Davies / David Porter

 

Conduit PR 

Tel:  +44 (0) 20 7429 6611 

Jonathan Charles / Ed Portman