{"id":11750,"date":"2022-02-02T21:35:20","date_gmt":"2022-02-02T21:35:20","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=11750"},"modified":"2022-02-02T21:35:20","modified_gmt":"2022-02-02T21:35:20","slug":"cameroon-victoria-oil-gas-provides-q4-2021-operational-update","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/cameroon-victoria-oil-gas-provides-q4-2021-operational-update\/","title":{"rendered":"CAMEROON: Victoria Oil & Gas Provides Q4 2021 Operational Update"},"content":{"rendered":"

SUMMARY<\/span>\u00a0<\/span><\/strong><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Sales<\/span>: Average daily gross gas sales rate for the quarter of 5.3 MMscf\/d (up 6.0% on Q3 21: 5.0 MMscf\/d) of natural gas, plus gross 5,584 bbls (Q3 21: 3,800 bbls) condensate was shipped to customers.<\/span>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Logbaba Performance<\/span>: The field has been meeting the demand using two of the three wells at any one time, with Well La-108 alternating with Well La-107.<\/span>\u00a0<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0<\/span>Matanda<\/span>: Following the selection of a suitable wellsite to drill a vertical well into the Marula prospect on Government-owned, late-life plantation lands, stakeholder engagement continued, and the preparation of site access roads commenced.<\/span>\u00a0<\/span><\/p>\n

\u00b7<\/span>\u00a0\u00a0Litigation:\u00a0<\/span>Certain of the non-monetary claims in the ICC arbitration with\u00a0<\/span>RSM Production Corporation<\/span> have been settled consistent with the UNCITRAL arbitration settlement agreement, previously announced on\u00a029 September 2021.\u00a0 The<\/span>\u00a0settled<\/span>\u00a0non-monetary claims resolve several<\/span>\u00a0prospective<\/span>\u00a0accounting issues.<\/span>\u00a0<\/span><\/p>\n

Roy Kelly, Chief Executive<\/span>\u00a0<\/span>of\u00a0Victoria Oil & Gas, commented<\/span>:<\/span><\/p>\n

“We are very pleased with the robust quarter that GDC achieved, despite a greater than expected number of maintenance shutdowns for its customers. Following the end of the quarter, 2022 has started very well with strong demand shown in the market.<\/span><\/em><\/p>\n

“I am pleased we could settle those non-monetary claims with a prospective impact in the ICC arbitration, and I am again grateful to\u00a0<\/span>RSM\u00a0<\/span>for their continued and constructive engagement on this.”<\/span><\/em><\/p>\n

\u00a0<\/span>LOGBABA UPDATE<\/span><\/strong><\/p>\n

\u00a0<\/span>Quarterly Production<\/span><\/p>\n

\u00a0<\/span>GDC continues to safely produce and sell natural gas to a variety of customers in the\u00a0Douala\u00a0area, who would otherwise be burning liquid fuels. Quarterly gross and net gas sales and condensate shipments at Logbaba are as follows (amounts shown in\u00a0bold\u00a0represent net gas and condensate sales attributable to GDC (57%)):<\/span>\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
\n

\n<\/td>\n

\n

Q4 2021<\/span><\/p>\n<\/td>\n

\n

Q3 2021<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Gas sales (MMscf)<\/span><\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

\n<\/td>\n

\n

\n<\/td>\n

\n

\n<\/td>\n

\n

\n<\/td>\n<\/tr>\n

\n

Thermal<\/span><\/p>\n<\/td>\n

\n

265<\/span><\/p>\n<\/td>\n

\n

465<\/span><\/p>\n<\/td>\n

\n

247<\/span><\/p>\n<\/td>\n

\n

434<\/span><\/p>\n<\/td>\n

\n

\n<\/td>\n<\/tr>\n

\n

Industrial power<\/span><\/p>\n<\/td>\n

\n

14<\/span><\/p>\n<\/td>\n

\n

25<\/span><\/p>\n<\/td>\n

\n

16<\/span><\/p>\n<\/td>\n

\n

28<\/span><\/p>\n<\/td>\n

\n

\n<\/td>\n<\/tr>\n

\n

Total (MMscf)<\/span><\/p>\n<\/td>\n

\n

279<\/span><\/p>\n<\/td>\n

\n

490<\/span><\/p>\n<\/td>\n

\n

263<\/span><\/p>\n<\/td>\n

\n

462<\/span><\/p>\n<\/td>\n

\n

\n<\/td>\n<\/tr>\n

\n

Daily average gross gas sales rate (MMscf\/d)<\/span><\/p>\n<\/td>\n

\n

5.3<\/span><\/p>\n<\/td>\n

\n

5.0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Condensate shipped (bbls)<\/span><\/p>\n<\/td>\n

\n

3,183<\/span><\/p>\n<\/td>\n

\n

5,584<\/span><\/p>\n<\/td>\n

\n

2,166<\/span><\/p>\n<\/td>\n

\n

3,800<\/span><\/p>\n<\/td>\n

\n

\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span>Logbaba Field Performance<\/span>\u00a0<\/span><\/p>\n

The Logbaba field has now produced a cumulative 21 Bcf of natural gas, having passed the 20 Bcf milestone in\u00a0July 2021. Well La-108 was shut in on\u00a025 December 2021\u00a0to allow Well La-107 to commence production. Well La-108 was closed as both wells cannot be used simultaneously whilst their wellhead flowing pressures are so far apart. As before, the Company will use the shut-in to monitor the Well La-108 pressure build-up to gain more understanding of the reservoir and well performance. At the time of writing, the Well La-108 shut-in pressure continues to build up.<\/span>\u00a0<\/span><\/p>\n

Customers<\/span>\u00a0<\/span><\/p>\n

GDC’s online customer count remained around 30 for the period, though several customers used the period for maintenance shutdowns.<\/span>\u00a0<\/span><\/p>\n

During\u00a0January 2022, demand was high, reaching a mid-week peak of 6.8 MMscf\/d gas sales (unaudited) on one occasion, the highest for three years.<\/span>\u00a0<\/span><\/p>\n

Look-ahead: GDC is forecasting a growth in demand of 10-20% in 2022 (compared to demand in 2021), from both organic and inorganic growth.\u00a0Cameroon\u00a0is hosting a major sporting event in Q1 and the Company expects this to have a positive effect on sales in January and February. GDC will continue to exercise capital discipline and look to reduce costs where possible.<\/span>\u00a0<\/span><\/p>\n

MATANDA UPDATE<\/span><\/strong><\/p>\n

\u00a0<\/span>Civil engineering work on site access continued during the period, occasionally hampered by the weather.\u00a0<\/span>The Company continues to market the Matanda Farm-Out opportunity.<\/span>\u00a0<\/span><\/p>\n

Towards the end of the period, an invitation to tender was issued and (post-period) seven rigs have been offered, six of which are in neighbouring countries, one of which is in\u00a0Europe.<\/span>\u00a0<\/span><\/p>\n

La-108 UNSURANCE CLAIM<\/span>\u00a0<\/span><\/strong><\/p>\n

The Company continues to pursue its insurance claim relating to the 2017 well control incident, now with the assistance of a leading international law firm that specialises in this area.<\/span>\u00a0<\/span><\/p>\n

WEST MED UPDATE<\/span>\u00a0<\/span><\/strong><\/p>\n

Whilst VOG have not received a binding offer at this stage, we continue to receive an encouraging number of enquiries about the West Med asset from credible and credit-worthy oil and gas companies, no doubt helped by elevated oil prices (the West Med discovery being light oil\/condensate).<\/span>\u00a0<\/span><\/p>\n

LITIGATION UPDATE<\/span><\/strong><\/p>\n

ICC Case NO. 23991\/MK<\/span><\/p>\n

Whilst the ICC has yet to make its award, the parties have now settled the prospective non-monetary elements of the arbitration and discussions with RSM continue to resolve the monetary claims and remaining retrospective non-monetary claims.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

SUMMARY\u00a0 \u00b7\u00a0\u00a0\u00a0\u00a0Sales: Average daily gross gas sales rate for the quarter of 5.3 MMscf\/d (up 6.0% on Q3 21: 5.0 MMscf\/d) of natural gas, plus gross 5,584 bbls (Q3 21: … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":9408,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,11,7444],"tags":[8648,10115,7977,7975,9330],"class_list":["post-11750","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-top-news","category-west-africa","tag-la-108","tag-logbaba-field","tag-matanda","tag-victoria-oil-gas","tag-west-med","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-33w","jetpack-related-posts":[{"id":9783,"url":"https:\/\/www.oilnewskenya.com\/index.php\/victoria-oil-gas-provides-q4-2020-operational-update\/","url_meta":{"origin":11750,"position":0},"title":"CAMEROON: Victoria Oil & Gas Provides Q4 2020 Operational Update","author":"","date":"January 29, 2021","format":false,"excerpt":"SUMMARY\u00a0 \u00b7\u00a0\u00a0\u00a0\u00a0The Company remains vigilant in relation to the Covid-19 pandemic and adherent to the authorities' guidelines in the jurisdictions in which it works: the lockdown in\u00a0Cameroon\u00a0was eased in\u00a0May 2020 and we can conduct operations and projects pretty much as normal, but a restrictive lockdown persists in the YaNAO region\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":12272,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cameroon-victoria-oil-gas-provides-q1-2022-operational-corporate-update\/","url_meta":{"origin":11750,"position":1},"title":"CAMEROON: Victoria Oil & Gas Provides Q1 2022 Operational & Corporate Update","author":"","date":"May 20, 2022","format":false,"excerpt":"OPERATIONS SUMMARY\u00a0 \u00b7\u00a0\u00a0\u00a0\u00a0Sales: Average daily gross gas sales rate for the quarter was 5.5 MMscf\/d (up 4% on Q4 2021: 5.3 MMscf\/d), and a gross volume of 4,691 bbls (Q4 2021: 5,584 bbls) condensate was shipped to customers.\u00a0 \u00b7\u00a0\u00a0\u00a0\u00a0Logbaba Performance: The field has been meeting the demand using two of\u2026","rel":"","context":"In \"Cameroon\"","block_context":{"text":"Cameroon","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/cameroon\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":8674,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cameroon-victoria-oil-gas-provides-q2-2020-operational-update\/","url_meta":{"origin":11750,"position":2},"title":"CAMEROON: Victoria Oil & Gas Provides Q2 2020 Operational Update","author":"","date":"July 27, 2020","format":false,"excerpt":"\u00a0\u00b7\u00a0\u00a0\u00a0\u00a0The Company remains vigilant in relation to the Covid-19 pandemic and adherent to the authorities' guidelines in the jurisdictions in which it works: the lockdown in Cameroon was eased in May 2020, but a restrictive lockdown persists in the YaNAO region of the FSU where our West Medvezhye asset is\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/07\/Victoria-Oil-Gas-Plc.png?fit=235%2C215&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":10670,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cameroon-victoria-oil-and-gas-provides-q2-2021-operational-update\/","url_meta":{"origin":11750,"position":3},"title":"CAMEROON: Victoria Oil and Gas Provides Q2 2021 operational update","author":"","date":"August 4, 2021","format":false,"excerpt":"\u00b7\u00a0Sales\u00a0: Average daily gross gas sales rate for the quarter of 5.4 MMscf\/d (Q1 21: 5.2 MMscf\/d) of natural gas, plus gross 4,468 bbls (Q1 21: 5,357 bbls) condensate was shipped to customers. \u00a0\u00b7\u00a0La-108 Performance: The well produced a cumulative 0.467 Bcf before it was shut-in to allow us to\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":10153,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cameroon-victoria-oil-gas-provides-matanda-logbaba-update\/","url_meta":{"origin":11750,"position":4},"title":"CAMEROON: Victoria Oil & Gas Provides Matanda, Logbaba Update","author":"","date":"April 1, 2021","format":false,"excerpt":"\u00b7\u00a0\u00a0\u00a0\u00a0Matanda.\u00a0\u00a0Well planning, procurement of long lead items and rig selection are underway, and the farmout process has been started with several parties registering interest. The Environmental and Social Impact Assessment (ESIA) has been delivered for the Ministry's consideration.\u00a0 Follow up meetings have been held with the Ministry of Environment\u00a0to plan\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":9407,"url":"https:\/\/www.oilnewskenya.com\/index.php\/cameroon-victoria-oil-gas-settles-litigation-with-chl-termination-of-the-chl-royalty-agreement\/","url_meta":{"origin":11750,"position":5},"title":"CAMEROON: Victoria Oil & Gas Settles Litigation with CHL Termination of the CHL Royalty Agreement","author":"","date":"November 13, 2020","format":false,"excerpt":"Victoria Oil and Gas has announced that its wholly owned subsidiary Gaz du Cameroun S.A. (GDC), a BVI company, and VOG have entered into a confidential Settlement Agreement with Cameroon Holdings Limited CHL, terminating the litigation with CHL and terminating the CHL Royalty Agreement. Victoria had ceased making payments under\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/11\/Cameroon-Logbaba.jpg?fit=663%2C422&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=11750"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11750\/revisions"}],"predecessor-version":[{"id":11751,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/11750\/revisions\/11751"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/9408"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=11750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=11750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=11750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}