Victoria Oil and Gas prepares to make first sales

Victoria Oil and Gas (VOG), the AIM listed exploration company with assets in Cameroon and the former Soviet Union, says it is on track to make its first gas sales by the end of 2011.

The production facilities at its Logbaba site, which will treat the gas from the wellheads and separate condensate, are now "mechanically complete".

The company now needs to complete testing of all instrumentation but expects this to be finished by the end of next week at which point gas will be "flared" to verify everything works.

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Victoria says its 95% owned Logbaba field in Douala, the economic capital of Cameroon, "has proven and probable reserves of 212 billion cubic feet of gas".

VOG anticipates gross gas sales of 8 million standard cubic feet per day by the end of the first year of operations, rising to 44 million by the end of 2014 - the equivalent of 7,300 barrels of oil.

Shares in VOG rose 3.37% in morning trading to 3.99p. In the year to date the firm's stock has fallen 29%.

BS