Victoria Oil and Gas PLC (LON:VOG) has spudded two development wells at its Logbaba gas field in Cameroon.
The wells, to be drilled by Savannah Oil Services, are designed to move 2P (Proven plus Probable) reserves into the more certain 1P (Proven) reserve category.
One will retrace a historic well dating back to the fifties with the other a step-out ( or new area) hole. The target is sands and shales found at depths between 1,700m and 3,200m.
One of the wells, La-107, will also have an exploration tail to test potential for gas down to 4,200m.
Both wells will be drilled directionally from a drilling pad adjacent to the Logbaba processing plant and will be tied into this facility once completed.
The two wells without the exploration tail will cost around US$40mln, which will be funded by revenue from Logbaba and partner contributions.
Drilling is scheduled to be finished by the second quarter of 2017.
House broker Shore Capital said the company had recently guided towards a November spud date and the commencement of drilling being confirmed was encouraging.
Shore recently estimated Victoria's assets were worth170p per shre on a risked basis.
Shares rose 9% to 34.7p.
-- update for broker comment and share price --