Victoria Oil & Gas plc (VOG) reported further progress from its onshore gas operations in Matanda and Logbaba in Douala, Cameroon.
MATANDA
In its report for Q4 2021, the company said its subsidiary Gaz du Cameroun S.A. (GDC) continued civil engineering work in readiness of drilling a vertical well at the Marula prospect.
The company also continued to market the Matanda farm-out and towards the end of 2021 issued an invitation to tender.
At the start of 2022, VOG received offers of seven rigs, six of which are in neighbouring countries and one in Europe.
LOGBABA
VOG added that the Logbaba field was meeting demand using two of the three wells, with well La-108 alternating with well La-107.
The Logbaba field has now produced a cumulative 21bcf of natural gas, after passing the 20 bcf milestone in July 2021.
SALES
During Q4 2021, the company reported average daily gross gas sales rate of 5.3 MMscf/d (an increase of 6.0% from Q3 21: 5.0 MMscf/d) of natural gas.
Gross 5,584 bbls (Q3 21: 3,800 bbls) condensate was shipped to customers.
LITIGATION
VOG said that certain of the non-monetary claims in the ICC arbitration with RSM Production Corporation had been settled consistent with the UNCITRAL arbitration settlement agreement.
OUTLOOK
GDC forecasts an organic and inorganic growth in demand of 10-20% during 2022 (compared with demand in 2021).
The company expects January and February sales to benefit from a sporting event in Cameroon during Q1.
GDC will also continue to exercise capital discipline and reduce costs where possible.
La-108 INSURANCE CLAIM
An international law firm is now assisting VOG with its insurance claim relating to the 2017 well control incident.
WEST MEDVEZHYE
VOG added it continued to receive an “encouraging number of enquiries” from oil and gas companies about the light oil/condensate West Medvezhye discovery (100%) in Siberia.