Oil and Gas Corporate News
Victoria Oil & Gas plc (BUY, £0.12) (VOG, 4.16p, ? 2.80%) announced that it has increased its effective working interest in the Logbaba gas and gas condensate field in Douala, Cameroon ("Logbaba Concession") to 95% following the serving of a Notice of Forfeiture on 18 July 2011 on RSM Production Corporation ("RSM") which previously had a 38% interest in the Logbaba Concession. The activities at the Logbaba Concession are regulated by a number of legal agreements between VOG's 100% subsidiary Rodeo Developments Limited ("RDL") and RSM which cover various operating and legal matters including the obligation for RSM to meet appropriately evidenced cash calls raised by RDL for the costs of development and operation at the Logbaba Concession. RSM failed to make payment under a cash call made on 15 June 2011, and a notice of default was served on 2 July 2011. As RSM failed to rectify the default, RDL has served Notice of Forfeiture in accordance with the Operating Agreement ("Agreement") between RDL and RSM. The effect of this is to require RSM to withdraw from the Agreement and transfer RSM's former interest to RDL. As announced on 6 May 2011 Societé National des Hydrocarbures, ("SNH") has indicated that it intends to exercise its right to take a 5% participation in the Logbaba Concession, and will pay its share of development costs. Following the forfeiture VOG, through RDL, will have a 95% interest and SNH will have the remaining 5% interest.
Jubilant Energy (LON:JUB) (JUB, 66.50p, ? 0.0%) N.V. announced that it has spudded the Srikantabari well (S-1) in the Tripura block. This is the first well to appraise the Kathachari-1 (K-1) discovery and is located 4 km north east and up-dip from K-1 and 3 km south west and down dip of the ONGC's discovery in TMD-1 well (flowed approximately 1.7 mmscfd). The well will be deviated by 650 meters to the south west and will be drilled to a total depth of 3100 meters true vertical depth subsea. The well is estimated to take 65 days to drill and will cost approximately USD 11 million on gross basis, excluding the testing cost. This well will test the Middle Bhuban Sands encountered in the K-1 well, one zone of which had flowed 5.2 mmscfd. Management's best estimate of gross un-risked prospective resources is 800 bcf for…
