Victoria Oil & Gas plc (LON:VOG) interim results have revealed an 11.4% increase in output at the Logbaba gas project in Cameroon in what has been described as a “very productive” period.
Logbaba yielded average gross production of 14.6mln cubic feet per day over the six months to June 30, and a total of 2.3bn cubic feet of gas was sold in the period.
READ: Victoria Oil & Gas to finalise long term supply contracts after first gas at LA-107
Operationally, the focus has been on new drill programmes designed to bring on new production wells to grow volumes and boost sales capacity.
VOG earlier this week unveiled better-than-expected results from the La-107 well which flowed some 54mln cubic feet per day in testing and began flowing gas into the Logbaba gas processing facilities from September 22.
Drilling is now also underway for the La-108 well, which has so far been drilled down to 2,085 metres.
Encouraging results
“The developments at Logbaba are very encouraging as we take the first steps towards our longer-term ambition of producing 100mmscf/d,” said chief executive Ahmet Dik.
“The Douala region alone continues to show a long-term demand for 150mmscf/d of natural gas, and we believe VOG is uniquely placed to take advantage of that market as the dominant onshore gas producer in country."
Separately, the company told investors it has extended the deadline for its proposed deal to partner Bowleven Plc (LON:BLVN) in the Bomono project, also in Cameroon. It could take an 80% stake in the venture by driving work programmes designed to unearth and monetise gas flows.
VOG will have until December 31 to close a deal with Bowleven, whose management has changed since the original agreement was struck.
Elsewhere, the company has identified considerable gas in place potential and several drilling targets through interpretation of seismic data at the Matanda project.
In terms of financial results, VOG reported revenue of US$15.4mln and US$4.4mln of earnings for the six month period.