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Victoria Oil & Gas reveals better-than-expected Logbaba-8 well result

“Our objective is to build scale from our gas production, to be in a position to deliver gas to high usage customers"
oil and gas operations
La-8 will come online for production later this month

Victoria Oil & Gas plc (LON:VOG) has revealed better-than-expected initial results from the drilling of the Logbaba-8 well in Cameroon.

The La-8 well was drilled down to a target depth of 2,865 metres and it encountered some 84.5 metres of net gas intervals, across the upper and lower Logbaba formations – which exceeded expectations and is significantly more than the 58 metres seen in the successful recent La-7 well.

READ: Victoria Oil & Gas raises US$23.5mln to accelerate new growth programme

La-8 will shortly be tested before it is put into production later this month.

VOG highlighted that the successes of La-7 and La-8 mean the company’s Gaz Du Cameroon (GDC) subsidiary will be able to conclude longer term contracts with high-usage gas customers in the City of Duala.

Chief executive Ahmet Dik said: "La-108 has now successfully reached target depth, which is an excellent result for the company with over 84.5m of net gas sands encountered.

READ: VOG results show 11% rise in gas production, attentions on new Logbaba successes

“This net pay exceeds those of the successful La-107 well, brought into production during September. La-107 has already delivered us a significant increase in available gas supply and we look forward to releasing flow test results from La-108 by the end of November.

“Our objective is to build scale from our gas production, to be in a position to deliver gas to high usage customers.  We estimate that there is demand for over 150 mmscf/d of gas in the Douala Basin and GDC is presently the sole provider to the region."

Shares gained 4.18% to 58.34p in afternoon trading. 

House broker Shore Capital said: "Cameroon-focused gas producer VOG has released what is, in our opinion, another great drilling update for its flagship Logbaba gas project in Cameroon."

"As the dominant gas producer in the Douala region, VOG is targeting delivery of 100mmcfd by the end of 2021 and, ahead of the release of flow test results from La-108, we continue to believe that VOG is superbly positioned to achieve this objective, given the strong results currently being achieved at the flagship Logbaba field."

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