Victoria Oil and Gas makes first commercial gas delivery
Shares in Victoria Oil and Gas (VOG) were given a boost after the firm's flagship Logbaba site delivered its first commercial gas production on schedule.
Shares in Victoria Oil and Gas (VOG) were given a boost after the firm's flagship Logbaba site delivered its first commercial gas production on schedule.
The firm's wholly owned subsidiary made the delivery to customers on the Magzi Industrial Estate in Douala, Cameroon, on 17 December.
VOG's Executive Chairman Kevin Foo said: "This is a very significant milestone for the company. We have now moved from an exploration and development company into a producer. The development of Logbaba is also important news for the city of Douala. The commissioning of two wells, production facilities and the first stage of the pipeline was successful and without incident."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Meanwhile, the second stage of pipeline network is under contruction and is expected to reach completion in the second quarter of 2012. Production is expected to soar from 8 million standard cubic feet per day (mmscf/d) by the end of 2012 to 44 mmscf/d by the end of 2014.
Condensate sales are similarly anticipated to be 160 barrels of condensate per day by the end of 2012, rising to 880 barrels per day by the end of 2014.
Logbaba, in which VOG has a 95% interest, has gross proved and probable reserves of 212 billion cubic feet of gas and 4.2 million barrels of condensate.
The company has two wells completed as producers and estimates that there are additional prospective resources in excess of 1 trillion cubic feet of gas with associated condensate within the exploitation area.
The firm anticipates that the pipeline is of sufficient size to satisfy the Douala industrial market over the medium term.
The share price, which has fallen 20% over the past year, had stabilised at 3.95p by 09:15.
NR
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Higher rates are disappearing – should you fix your savings?
Fixed savings rates have dropped to their lowest levels in over a year. Should you fix your savings now ahead of a potential base rate cut in November?
By Katie Williams Published
-
Nine million people fall victim to financial scams, says Citizens Advice
The charity says that around one in five people across the UK have been caught out by a finance scam in the past year - here is how to protect your money
By Chris Newlands Published