Continental Focus, International Reach

VOG Updates Cameroon

Monday, February 19, 2018

Victoria Oil and Gas (VOG), in its latest release, updated drilling activities in onshore Cameroon. With the La-107 and La-108 wells being successfully completed and the rig stacked in December, the La-107 is now a production well. The company is in the process of finalizing a well plan for the La-108 to complete the clean-up and testing of the Lower Logbaba Sands. This includes recovery of the spent perforation gun.

Once this is done, the Upper Logbaba Sands in La-108 can be tested, if required, as gas flows from the Lower Logbaba Sands were ahead of expectations. Preliminary internal reserve estimates for La-107 and La-108 based on well logs and flow tests are material and will be published in due course.

The final cost of the well program was $87 million against an original budget of $40 million. This overrun was the result of a combination of many factors and a detailed analysis will be completed. However, the well control event during the drilling of La-108 was the main cause of the delay and cost overruns. An insurance claim has been lodged with the company’s insurers to cover the substantial and material costs associated with this event and the consequential schedule and cost overrun. As is normal in these situations, the outcome of our claim is not certain.

The rig was stacked in December, with the intention of retaining it on site for the drilling of La-109. With the suspension of gas consumption by ENEO, as announced in our 5 January 2018 RNS, the Company decided to formally release the rig January 31.

VOG also progressed with subsurface evaluation work for the Matanda Block, which indicates the potential for more than 1Tcf of recoverable gas across onshore sections of the block. The company continues to work with the government of Cameroon to obtain the assignment of its participating share in this block.


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