Victoria Oil & Gas plc (VOG) announced stable sales of natural gas as the company’s wholly owned subsidiary Gaz du Cameroun (GDC) continues with plans for new wells at Matanda.
LOGBABA FIELD
In VOG’s Q4 2021 report, GDC’s operations in the port city of Douala had a sales rate of 5.2 MMscf/d (Q4 2020: 5.1 MMscf/d) of natural gas.
Gross 5,473 bbls (Q4 2020: 3,109 bbls) condensate was produced and sold in the Douala area.
VOG said that well La-108 continued to supply the base demand, topped up by well La-105, with water production from the well continuing to fall slowly.
MATANDA BLOCK
Well planning continues and public hearings, including an opportunity to read VOG’s environmental and social impact assessment, are taking place in villages near potential well sites.
As work continues on well design, site and rig selection, management has been conducting sub-surface analysis of the various prospects.
Two prospects, Marula and Theobroma, are now ranked at the top of the list.
VOG said it was carefully considering all the surface issues including the any impact on nearby residents, footprint of the site and access from major roads.
The quoted prospective resources for these prospects are company estimates, which form part of the estimate for Matanda onshore of 1,196 bcf.
GDC owns 75% of the 1,235 km2 Matanda licence area, (adjacent to Logbaba gas project) in the Douala Basin.
Afex Global Ltd (AFEX) owns the remaining 25% following an assignment of the production sharing contract approved by the Cameroon Government in December 2018.
VOG chief executive Roy Kelly said that the company was very pleased with recent operational and corporate progress.
“Operationally, the falling water production from well La-108 is welcome, and we continue to use the well for our base load whilst we monitor the well closely.
“The public hearings for the Matanda drilling programme are being well attended and good engagement is taking place with local communities.”
RSM LITIGATION
VOG said that RSM had instituted an arbitration in Texas, USA under ICC rules in which it is asserting material claims primarily related to invoices for the drilling of wells La-107 and La-108, and certain audit exceptions.
The gas company today added that the substantive matter had just been heard by an Arbitration Panel under ICC rules in the USA, with the findings expected to be published in several months’ time.
VOG said it continued to defend vigorously the claims raised by RSM.
“The amounts under dispute in this arbitration, including GDC’s counterclaims, are significant and an adverse finding could have a material impact upon the results and position of the group.”