Petroleum Africa
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Thursday, April 14, 2016
Victoria Oil $ Gas’ (VOG) wholly-owned subsidiary Gaz du Cameroun (GDC) has agreed to a $26-million debt facility to support its production expansion at Logbaba through 2016 and 2017. The facility has been secured with BGFIBank Cameroon. VOG aims to avoid recourse to equity markets, while ensuring gearing is restricted to appropriate levels as the Company continues to build value.
During 2016 VOG intends to increase gas production from the Logbaba Project by 30%, following the 107% increase in average daily production achieved in calendar year 2015. To meet the Cameroon market’s demand for gas.
Key elements of GDC’s expansion program are to drill one twin well and one step out well at the Logbaba plant site with the objective of increasing production reserves. The company also plans to extend the Bonaberi pipeline to customers with gas service agreements in place and increase gas processing plant capacity in three phases to handle expected increased gas flow from wells.
It is the company’s objective to fund the Logbaba development through operating revenues and capital contributions from GDC and RSM Production Corporation, its 40% partner. The facility announced today provides more than sufficient financing for GDC to fund its share of the production expansion program.
GDC’s new facility with BGFIBank extends the existing loan of $4.4 million. The debt facility agreed with BGFIBank by GDC is for a total of XAF 15 billion ($26 million).
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