Victoria nears completion of Logbaba gas field in Cameroon

Victoria Oil & Gas PLC said production facilities for Logbaba gas and condensate field near Douala, Cameroon, are mechanically complete and precommissioning is substantially finished. The company expects first gas sales by yearend.

Victoria also has completed a 5 km, 400 mm, 250 mm, and 63 mm diameter pipeline from the production facilities to the first customer hub at the Magzi Industrial Estate.

The company anticipates steadily building gas sales to about 20 customers after completion of a 34-km pipeline network by yearend 2012.

The pipeline network will have a 60 MMscfd capacity.

Victoria plans to sell 8 MMscfd by yearend 2012, rising to 44 MMscfd by yearend 2014.

A June 2011 Victoria investor presentation said the gas price is fixed at $16/MMbtu for 5 years, in a 20-year exclusive contract.

The production facilities will separate and stabilize the condensate before it is trucked 60 km to the Sonara refinery at Limbe. Victoria expects to sell 160 b/d of condensate by yearend 2012, rising to 880 b/d of condensate by yearend 2014.

The company estimates that the field contains proven and probable reserves of 212 bcf of gas and 4.2 million bbl of condensate.

In the 1950s, four exploration wells delineated the field but at that time there was no gas market in Cameroon.

Victoria drilled two successful development wells in 2009-10 at a cost of $53 million and encountered more than 600 ft of gross sandstone pay. On test, one well at depths between 7,005-8,500 flowed 11-56 MMscfd of gas and 210-1,000 b/d of condensate at wellhead pressures of 2,750-4,552 psi. The other well flowed up to 22 MMscfd of gas at a 3,078 psi wellhead pressure.

Victoria holds a 95% interest in the field and is the operator.