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
http://www.rns-pdf.londonstockexchange.com/rns/3009G_1-2020-11-24.pdf
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