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New CEO lauded for Victoria Oil growth phase

Last updated: 12:22 23 Jun 2016 BST, First published: 07:22 23 Jun 2016 BST

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Ahmet Dik was already a main board member.

Victoria Oil & Gas plc (LON:VOG) has promoted Ahmet Dik to the role of chief executive.

A board member already, and head of the company’s main operating subsidiary, Gaz du Cameroun, Dik has spearheaded VOG’s growth.

He helped the company land a grid supply deal for the gas from the company’s Logbaba field and has overseen the acquisition of the neighbouring Matanda block.

“Ahmet's appointment as group CEO follows a sustained period of operational delivery from the company, as we build a substantial gas business in Cameroon,” said chairman Kevin Foo.

“Ahmet has been instrumental in that growth over the last three years and now he will lead us as we expand further in Cameroon and elsewhere within Africa." 

The shares marked time in early afternoon trade at 32.3p, valuing the business at £35mln.

The acquisition of the Matanda block in Cameroon earlier this marked a significant step change for VOG, giving it a substantial gas presence in a country crying out for power.

By taking a 75% stake it has bought an asset 60-times larger than its existing Logbaba concession.

IN DEPTH: The deal that transformed VOG 

LATEST: Looking beyond Cameroon 

Victoria Oil & Gas by numbers 

The North Matanda field is estimated to hold 1.8 trillion cubic feet (Tcf) of gas and 136mln barrels of condensate on a p50 (50% probability) basis.

That compares with 208bcf of gas and 3.1mmbls of condensate at Logbaba as of last October.

Mining titan Glencore was the operator, but the agreement has seen it assign its 75% interest and 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.

The work programme plan initially is to explore onshore licence areas within a few kilometres of Logbaba and send any discoveries through the pipeline network operated by Gaz Du Cameroun or GDC, Victoria’s Cameroon subsidiary.

At present, GDC estimates demand for gas in Cameroon for thermal and power generation is estimated be in excess of 150mmscf (millions of standard cubic feet) per day and one of its stated ambitions is to grow production to meet this demand.

Matanda will certainly do that. GDC is currently the only supplier of natural gas to Douala, Cameroon’s rapidly growing second city.

In GDC's own words, it manages the whole value chain from the wellhead to customer connection.

Long-term supply contracts have been established with customers at prices from $9/mmbtu (millions of British thermal unit) to $16/mmbtu and with prices not subject to regulation.

Just from Logbaba, where it has a 60% stake, production is currently running at 15mmscf/d and a 'primary objective' in 2016 is to exceed 3.7 Bcf of annual production, a 30% increase over 2015.

Two new wells on the Logbaba field are also planned, and new CEO Dik has led the planning phase.

Infrastructure plans include designs for the gas treatment plant capacity to rise to 40mmscf/d, adding 13km to the pipeline network and to develop new product areas such as compressed natural gas (CNG). 

--ADDS BACKGOUND---

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