Victoria Oil and Gas finds potential new hydrocarbon accumulation at Logbaba

Victoria Oil and Gas (AIM: VOG) said results from the ongoing passive seismic spectroscopy survey at its Logbaba gas and condensate field in Cameroon showed a major and previously unknown potential hydrocarbon accumulation adjacent to the current drilling location, while also indicating best prospectivity in the existing structure to the north of it.

The accumulation, which has not been seen in any previous subsurface studies due to the lack of geophysical data, is located two kilometres away from the current drilling location within the company’s license block and appears to be substantially larger than the existing discovery. The survey also suggested that the most prospective area at the existing discovery lied some 300 metres from the La-104 well.

The data could impact the design of the next well, La-106, which is due to be spudded later this week.

The company said that the survey findings were in line with the geological understanding of the Logbaba reservoir sands and correlated well with data from the four old wells and the newly drilled La-105.

“The data from the passive seismic is very significant for VOG and Logbaba. The results suggest that a large and unexplored accumulation lies just a few kilometres away from the original discovery. This would be a considerable addition to our reserve base if it is ultimately confirmed by drilling. The passive seismic data correlates well with the subsurface data we obtained from all previous wells and our recently-completed well La-105,” said chairman of Victoria Oil and Gas Kevin Foo.

Back in mid-January the company reported that logs at Logbaba indicated at least 65 feet of very good quality sandstone pay with additional potential of further 260 feet. Earlier than month, La-105 encountered multiple gas bearing sands at depths between 6,017 ft and 8,330 ft that could be correlated to those found and tested in the nearby well La-103, which flowed at rates from 5 to 12 mmcf/d (million cubic feet per day) of gas from individual sands when drilled in 1956.

The proven and probable reserves for Logbaba are currently estimated at 106 billion cubic feet. GeoDynamics Research (GDR) has started a passive seismic spectroscopy survey over the entire license area, which will take measurements of 50 locations around the field to identify hydrocarbon bearing areas. Initial findings of the survey are expected by mid-January this year.

VOG also develops the West Medvezhye gas field in Russia, planning a second passive seismic spectroscopy study over a large area of the northern and eastern section of the licence block this year.

Fox-Davies Capital reiterated its 'buy' recommendation for the stock and raised its target price to 8 pence from 7 pence at the beginning of January.