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.
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
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
-
8 of the best properties for sale near ski slopesThe best properties for sale near ski slopes – from a luxury cabin in Geilo, one of Norway’s premier ski resorts, to a large chalet in Valais, Switzerland
-
Cash hoarders take total UK savings to £2 trillion – why aren’t we investing?Investment-shy Brits are hoarding huge amounts of cash in their savings accounts. We look at the case for saving versus investing.
