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The Matanda block is over 60 times larger than the Logbaba concession, with the North Matanda field estimated to hold 1.8Tcf of gas and 136mln barrels of condensate on a p50 basis.
Glencore Cameroon is currently the operator, but the agreement will see it assign its 75% interest and the operator responsibilities in the block to Victoria.
In return, Victoria will undertake a work programme to be agreed by the Cameroon government. AFEX, a Bermuda-based resource group, will retain its 25% participating interest.
Exploration initially will focus on the onshore licence area located within a few kilometres of Logbaba and its existing pipeline network operated by GDC, Victoria’s Cameroon subsidiary.
Costs are expcted to be modest to begin with as the company re-works the existing historical data before deciding on drill targets. As well as one by Glencore, two wells were drilled by Gulf Oil in the eighties.
“We believe the assignment and operatorship of the Matanda block is a major step towards allowing the group to meet the growing energy needs of the Cameroonian economy.
The North Matanda Field is an extension of the Logbaba structure, he added, and three wells drilled in the North Matanda Field and the extensive 2D and 3D seismic data shows a strong geological continuation between the two.
“Tests from the NM-1x, 2x and 3x wells proved a rich condensate yield varying from 30 bbl/mmscf to more than 70bbl/mmscf.”
Shares rose 10% to 41p.