Cameroon based Victoria Oil and Gas has seen a 10.7% upswing in gas production from its Logbaba sand and shale field.
The gas field, just outside Cameroon’s largest city, Douala, saw production increase for the start of the year.
Meanwhile two new development wells spudded at the site at the tail end of 2016 are expected to increase probable reserves.
During the first three months of the year gross Logbaba gas sales increased to 1,153mmscf compared to 1,131mmscf in the same period in 2016.
In terms of developing new assets, Victoria agreed a farm-out with with Bowleven subsidiary EurOil Limited.
As part of the deal, a Victoria subsidiary will acquire on completion an 80% working interest in the 2,237 sq.km Bomono license, adjacent to Logbaba field.
Seismic interpretation on Matanda field, of which the firm has a 75% participating interest, shows “considerable” gas in place potential and several drilling targets.
Chief executive Ahmet Dik said: “We have significant momentum in the business following a very busy and productive quarter.
“Gas sales increased and record sales were achieved in March.
“The drilling of planned production wells La-107 and La-108 continued and the Board believes the discovery of 125m of gas sands in the Logbaba formation of La-108 is very encouraging. The board believes that these sands will contribute additional Pproven reserves and be at least as productive as well La-105.”
Unaudtied financial highlights for the start of 2017 include a $8.1 million net revenue – nearly double the fourth quarter 2016 results.
Victoria’s cash position has been reduced by around $5million since the start of last year, while net debt has also increased by around $9million.
The company’s current cash position is $14.1 million.
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