Victoria Oil & Gas has secured drilling equipment and funding from Cameroon Holdings Ltd. for its Logbaba gas and condensate project. Logbaba is located in Douala, the economic capital of Cameroon. The field was discovered in the 1950s and all four exploration wells flowed gas at rates of up to 62 million cubic feet per day.

RPS Energy undertook an evaluation of the Logbaba field in July 2008. Using the data provided, they determined 14Mmboe of 2P reserves with an NPV10 valuation of $169Mm. Their evaluation only encompassed less than ten per cent of the total 65km2 licence area.

Logbaba Development Plan 2009 (see: http://www.victoriaoilandgas.com/operations/cameroon.html)
      
PHASE 1:

    * Gas production to serve existing contracts
    * Drill and test a twin to Well 104 down to 10,000 ft
    * Production expected to be min. 12Mmcf/d against current
      local industrial demand of 8Mmcf/d
    * Install surface facilities
    * 12Mmcf/d capacity gas processing facility
    * 15 km, 10” pipeline to the industrial users
    * Sell gas to industrial market in Douala
    * Letters of intent already signed with potential customers
      for a total of 8Mmcf/d at an indicative price of $15/mcf
PHASE 2:

    * Gas to additional clients and swing production
    * Drill second well to increase production to meet expected industrial demand of >25Mmcf/d
    * Provide swing production for users and new consumers

The latest news is that privately-owned Cameroon Holdings will provide a drilling rig and between $4 million and $10 million in additional funding in exchange for royalty payments

http://www.stockopedia.com/news/announcement/VOG/090709vog000624.htm

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