Victoria Oil & Gas plc (LON:VOG) told investors it has exercised the option to extend the deadline on a proposed deal with Bowleven Plc (LON:BLVN), its partner in the Bomono project in Cameroon, to 31 December 2017.
The extension comes after Bowleven’s management team at the time of the original deal in March was replaced in an activist-led boardroom ousting.The original deal saw Victoria taking 80% of Bomono and a US$6mln work programme had been envisaged. The plan had been for gas to be monetised by Victoria.
In a stock market statement on Thursday, Victoria said talks are progressing with Bowleven's new management team and it continues to work with the government of Cameroon to advance the Bomono project.
Victoria recently updated the market on the success of new drilling at the Logbaba gas project, where it has now brought online a new production well that will deliver better-than-expected rates and bolsters the group’s position ahead of future gas sale contracts.