Victoria Oil & Gas PLC Logbaba Drilling Update (3538J)

TIDMVOG

RNS Number : 3538J

Victoria Oil & Gas PLC

28 June 2017

28 June 2017

Victoria Oil & Gas Plc

Logbaba Drilling Update

Victoria Oil & Gas Plc ("VOG" or "the Company") is pleased to provide an update on the two well drilling programme at the Company's Logbaba gas production site, located in the industrial port city of Douala, Cameroon.

Highlights

   --    Net sands encountered so far of 100m in La-108 and 35m in La-107 have exceeded expectations 
   --    Drilling to continue and is expected to increase net pays of both wells 

-- 300m high-pressure flowline from the La-107 well head to the gas processing plant has been installed

   --    Flow testing and production from La-107 is expected in Q3 2017 

The programme consists of well La-107, a twin of La-104, which was originally drilled in 1957; and a step out development well, La-108, both of which will be production wells.

In well La-108, approximately 100m of net gas-bearing sands have been encountered between the top of the Logbaba Formation at 1,670m TVD (true vertical depth) and 2,702m TVD. La-108 has 95/8" casing set to 1,597m TVD. The La-108 8 1/2 " side-track was deferred until an in-depth engineering review of the plan was completed and the rig was therefore skidded to drill well La-107. The La-108 side-track plan is now ready to implement.

On La-107, the 8 1/2 " hole section has been drilled to 2,445m TVD, wireline logs have been run and the 7" production liner has been run and cemented at 2,426m TVD. Well logs to this depth so far indicate net 35m of high permeability, high porosity gas bearing sands in the Upper Logbaba Formation.

Drilling on La-107 will continue, with a 6" hole targeting the base of the Lower Logbaba sands. On reaching this target, the well will be logged prior to running a 4 1/2 " liner, and, when completed can be put directly into production. A 300m high-pressure flowline from the well head to the gas processing plant has been installed. Production from La-107 is expected in Q3 2017.

It is then planned to skid the rig back to sidetrack and complete well La-108.

Net sands encountered so far of 100m in La-108 and 35m in La-107 have exceeded expectations and compare favourably to net sands of 54m encountered in primary production well La-105.

Planned completion of both wells is now in Q3 2017. The Company anticipates that GDC's share of well costs will be covered by cash generation and existing credit facilities.

The Company, which is the only gas producer in the Douala region believes there is current demand for 150 mmscf per day in Douala.

Ahmet Dik, CEO, said; "Our success so far on La-107 in securing 35m of gas-bearing reservoir sands in the Upper Logbaba is very positive news. We shall continue drilling and completion work on La-107 through to production, before moving back to drilling and completing La-108.

The net sands encountered so far of 135m in both wells is very encouraging, especially when compared to the 54m of net sands encountered in our primary production well La-105, so our focus is getting all gas "behind pipe" and into production within Q3.

This is a challenging drilling program, with two deep, high-pressure, high-temperature wells that have been slow and expensive to drill. Our drilling team have worked tirelessly to drill below 2,000m, a depth where only a handful of wells have been successfully drilled in the Douala Basin."

This announcement contains inside information.

For further information, please visit www.victoriaoilandgas.com or contact:

Victoria Oil & Gas Plc

   Kevin Foo/Ahmet Dik/Laurence Read                                   Tel: [phone] 

Strand Hanson Limited

   Rory Murphy/Stuart Faulkner/James Dance                          Tel: [phone] 

Shore Capital Stockbrokers Limited (Joint Broker)

   Mark Percy/Toby Gibbs (corporate finance)                         Tel: [phone] 

Jerry Keen (corporate broking)

FirstEnergy Capital LLP (Joint Broker)

   Jonathan Wright/David van Erp                                            Tel:  [phone] 

Camarco

Billy Clegg/Nick Hennis Tel: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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June 28, 2017 02:00 ET (06:00 GMT)