6 May 2011 09:41
Victoria Oil & Gas PLC
6th May 2011
Victoria Oil & Gas Plc
('VOG' or 'the Company')
(AIM: VOG)
Exploitation Licence awarded by the President of the Republic of Cameroon for the Logbaba gas and gas condensate field
Victoria Oil & Gas Plc, ("VOG,") the AIM quoted oil and gas company is pleased to announce the award, by Presidential Decree, of an Exploitation Licence for development of the Logbaba gas and gas condensate field in Douala, Cameroon.
Following extensive due diligence carried out by the State oil and gas company, Societe National des Hydrocarbures, ("SNH"), the Ministry of Industry, Mines & Technology and the Offices of the President of Cameroon, Rodeo Development Limited, ("RDL,") a wholly owned subsidiary of VOG, has received official confirmation that Decree No 2011/112 was signed by President Paul Biya of the Republic of Cameroon, dated 29th April 2011, awarding exploitation rights to and appointing RDL operator of the Logbaba Concession.
The exploitation rights cover the entire 20 sq km development area applied for by VOG and extend for 25 years with an option to add a further 10 years.
In addition, under the terms of the Logbaba Concession Agreement signed on the 31st May 2001, SNH will exercise its right to participate in the Logbaba Concession, and will pay its share of development costs, under the following revised ownership structure:
Victoria Oil and Gas 57%
RSM Production Corporation 38%
SNH 5%
Kevin Foo, Chairman of VOG commented, "This is the news we have been waiting for. We have worked intensely and productively over many months with the Ministry of Industry, Mines & Technology, SNH and the offices of the President of Cameroon to make this happen. We welcome SNH as our partner and are pleased with its endorsement of the project. We now intend to deliver first gas to industrial customers in Douala in Q4 2011 and to build on our customer base."
For further information, please contact:
Victoria Oil & Gas Plc - Tel: +44 (0) 20 7921 8820
Kevin Foo / Martin Devine
Strand Hanson Limited - Tel: +44 (0) 20 7409 3494
Simon Raggett / Angela Peace
Fox-Davies Capital - Tel: +44 (0) 203 463 5000
Daniel Fox-Davies/ David Porter
Tavistock PR - Tel: +44 (0) 20 7920 3150
Ed Portman/ Paul Youens
Background Information on Victoria Oil & Gas Plc:
Victoria Oil & Gas is an independent oil and gas exploration and production company with projects in Africa and the FSU. The Company's principal assets are the Logbaba gas and condensate project in Cameroon and the West Medvezhye field in Siberia, Russia. Logbaba is located in Douala, the economic capital of Cameroon. The field was discovered in the 1950s and all four exploration wells encountered gas. The Company drilled two successful development wells in 2009/10. West Medvezhye is situated in the prolific Yamal-Nenetsk hydrocarbon region in Siberia. An independent reserve audit estimated prospective resources for the field of over 1.1 billion barrels of oil equivalent.