Oil & Gas Corporate News

Victoria Oil & Gas (LON:VOG) (BUY, £0.09) ( 4p, ? (0.50%)) announced the results of La-106, the second well at the Logbaba gas and condensate project in Doula, Cameroon. The well successfully reached a total measured depth of 10,509ft on 17th April 2010 and is currently being logged prior to its completion as a development well. The well was drilled deeper than planned due to the better than expected sand quality in the Lower Logbaba sections. Multiple gas-bearing sands were encountered between 5,482ft and 10,400ft, which can be correlated to wells drilled in the 1950's. The data obtained indicates in excess of 300ft of gross pay. Further detailed information on La-106 will be announced after running open-hole logs and completing the petrophysical evaluation. Well flow tests will be run after the casing is set. The completion of La-106 means that the key licence and joint venture requirements have been met. The Company has now completed all significant commitments under the exploration licence agreement and is in the process of submitting the necessary documentation to the Cameroon government to be awarded the thirty five year exploitation licence. Conceptual engineering for the gas production facilities at Logbaba and the pipeline to previously identified industrial customers has now been completed and has confirmed the feasibility of the project and its design assumptions. Detailed engineering, budget and schedule definition is underway with the target to deliver first gas to customers in Q4 2010. The Company is working closely with all Ministries and stakeholders in Cameroon to ensure that plant and pipeline construction meets the highest engineering and safety standards and that all permits and licences to operate are expedited.
Meanwhile in Russia, the 2010 work programme is underway at the West Medvezhye exploitation/licence in the prolific Yamal-Nenetsk hydrocarbon region in Northern Siberia. The current work includes Gas Tomography and Passive Seismic spectroscopy surveys over a large part of the block as part of the West Med appraisal and delineation programme and a 62km winter road has been built.

Comment: This excellent result follows La-105, VOG's first well in Cameroon, completed in March 2010 and tested at rates in excess of 55mcfd of natural gas and 1,000b/d of condensate from depths of 7,005 8,500ft from Lower Logbaba and Upper Logbaba D sands. La-106 was slightly redesigned following the results of a passive seismic…

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