Victoria Oil & Gas announced today that their Cameroon project, the La-105 well, is showing rates in excess of 55 million cubic feet of natural gas and 1,000 barrels of oil equivalent per day. Depths are reportedly between 7,005 -8,500 feet.
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 gas 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. Victoria signed an in-principle agreements with industrial customers in Douala for around 8 MMscf/d of natural gas at a price of US$16 per thousand cubic feet.
Today the company confirmed that production levels at the prospect are sufficient to satisfy industrial demand in Doula. The test covered horizons of the Lower Logbaba formation, which had not been tested before, and the Upper Logbaba D sands. The Upper Logbaba A through C sands, although indicated as the best quality hydrocarbon-bearing sands encountered in the well logs, were not tested as the well indicated more than sufficient production capacity to meet initial gas demand of 8 MMscf/d. The Upper Logbaba A - C sands will reportedly be perforated and added to the completion interval when required for production. Chief Operating Officer Radwan Hadi commented on the implications of the La-105 results:
"La-105 has much greater deliverability than we anticipated when compared to the previous Elf wells. Part of the reason for this is that we are using far more effective logging and completion technology than was available in the 1950s. There also appears to be additional productive potential in the well that could be realised by hydraulic fracture stimulation of some of the lower quality reservoir sands. We will need to acquire more data to allow us to design and implement a stimulation programme, but in the longer term this could add significantly to the Logbaba reserves."
Once a full interpretation of the test results has been completed, including those from well La-106, the company expect to release an official statement, based on the independent reserves estimates, in Q2 2010. Chairman Kevin Foo added:
"We are witnessing the creation of an important gas utility business in Cameroon. The…
