Victoria Oil & Gas, the Cameroon based gas and condensate producer and distributor, has provided a general corporate and operational update on key matters.

Highlights

• The Company experienced a small number of positive Covid-19 cases in the Douala office over the last few weeks; the office was immediately sanitised and remains open only to those employees with a negative Covid-19 test.  The staff affected were asymptomatic and have thankfully started to recover quickly and operations have not been affected. The Yamalo-Nenets Autonomous Okrug region of Siberia in which our West Med asset is located remains locked down for now due to COVID-19.
• Cameroon Operations. Recent weekday production has been 5.5 to 6.0 MMscf/d gross gas, but with the usual daily and weekly fluctuations, with one customer returning having paid off aged debt, and one customer increasing its consumption for both power and thermal.
• Early La-108 Performance. Well La-108 was brought online on 15 February. The well was initially producing on its own and more recently in combination with another well to ensure that operations could be managed given contrasting wellhead pressures.  The well started producing significantly more water than the other wells, and above what might be expected as water of condensation. Analysis of this water suggests it is significantly fresher than formation water and thus likely composed of drilling and completions fluid lost from the drilling (which started in 2016), through to the attempted remediation in 2019 and then successful remediation in 2020. The water-gas-ratio stabilised at around 50 bbls/MMscf, and has fallen below this in the last week. This level of water production (up to 200 bbl/d) is being managed well by the operations team.  We propose to produce a larger volume from the well and then carry out a pressure build-up test.
• West Med. We have signed a non-binding term sheet with a potential buyer of VOG’s wholly owned subsidiary, ZAO SeverGas-Invest (SGI), which owns the West Medvezhye (West Med) licence. This buyer has instructed recognised third-party specialist advisors to conduct what we hope will be final, confirmatory due diligence on the asset. This potential buyer has a period of exclusivity which runs to 31 May 2021. The asset was fully impaired in VOG’s accounts in 2014.

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Source: Energypedia