Extractive Industries

VOG seeks to increase La-108 gas production at Douala

Victoria Oil & Gas plc said it was considering adding perforations to well La-108 at Logbaba to double the net pay at its operations in the port city of Doula in Cameroon.

Evaluations: VOG has presented the Matanda farm-out opportunity to a number of parties (Victoria Oil & Gas)

In its Q2 2021 review, the onshore gas producer and distributor said that its subsidiary, Gaz du Cameroun (GDC) had shut in the well to perform a pressure build up.

Prior to shut-in on 6 June, the well had produced a cumulative 0.467 Bcf.

“Such is the depth and pressure difference between the top and bottom of the reservoir that perforating must be done in two stages,” said chief executive Roy Kelly.

“Adding perforations could increase the well’s productivity, reduce the overall water cut and of course allow us to access all of the well’s connected gas volumes.”

VOG added that the other wells were able to satisfy current demand.

Average daily gross gas sales rate for Q2 were 5.4 MMscf/d (Q1 2021: 5.2 MMscf/d) of natural gas, plus gross 4,468 bbls (Q1 21: 5,357 bbls) condensate was shipped to customers.

MATANDA

Planning for new wells in Matanda block continues and VOG has started tendering for long lead items and key equipment and services.

The company has also presented the farm-out opportunity to a number of parties who continue their evaluations.

Although during July customers increased organically, August is usually a slower month for sales.

In June, GDC passed one million man-hours without a single lost time incident.

WEST MED

VOG’s period of exclusivity with a potential buyer expired at the end of May 2021.

The company continues discussions with the party but, as it is also engaging with other interested parties, VOG has not yet renewed the exclusivity.

LITIGATION

The arbitration in Texas, USA under ICC rules (initiated in October 2018) was heard at the end of April, and the panel’s findings are expected during August or September.

The arbitration in London under UNCITRAL rules (initiated in February 2020) will be heard at the end of September.

Arbitrations under ICC and UNCITRAL rules are confidential processes and VOG is not permitted to provide detailed comments on them, beyond saying that it continues to vigorously defend the claims raised by RSM.

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