Cameroon Limbe - Home to SONARA, Cameroon Oil Refinery

Yaounde, Cameroon Africa(Cameroon News) -Victoria Oil & Gas have stated that they will start their first gas sales from the Logbaba field by the end of this year.

Victoria Oil & Gas PLC is putting in place surface facilities to develop two-well Logbaba gas-condensate field on the Logbaba license in the city of Douala, Cameroon, by the end of this year.

The field has been estimated to contain 212 bcf of proved and probable reserves in the Late Cretaceous Logbaba formation. The company anticipates producing 8 MMscfd of gas in the first year following which the yield would be increased to 44 MMscfd by the end of 2014. Victoria stated that the field is Cameroon’s first onshore gas production.

Distribution pipelines are proposed to be horizontally drilled. Pipeline capacity is 60 MMscfd, which is adequate to supply gas to the Douala industrial market on a medium term basis, Victoria said. Gas will be provided on the basis of 11 completed sales agreements while 10 more orders are still awaiting final sanction. The gas sale would be priced at $16/MMbtu.

Condensate that is taken out at a process plant will be stabilized and retained following which it will be sent over to the Sonara refinery at Limbe, Cameroon. Condensate production is estimated at the rate of 20 bbl/MMbtu.

The field presently has announced that its proved and probable reserves are good enough to look after the gas requirements of an average 30 MMscfd for the next two decades. On a long term perspective, as further reserves are determined, gas may be provided to huge sized gas-fired power stations connected to the grid, till the time Victoria is able to fund a joint venture with an independent power producer or provide gas to third parties.

Victoria Oil & Gas holds 57% stakes in the concession interest while the remaining 38 % are held by RSM Production Corp. and Cameroon’s state holds SNH 5%.