Proactive investorsLogo Proactive Investors UK Website

Search field

1 year chart

digital-look imported chart image

1 day chart

digital-look imported chart image
Epic & Msn data
Epic VOG
Time: 10:52:31
Mid Price: 4.06
Change Today: -0.08 Descending
Change % Today: -1.93 Descending
Fifty Two Week High: 6.70
Fifty Two Week Low: 3.15
Market Capital: 57.97
Period & price data
Period Price
Now: 4.06
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: AIM
Sector: Energy
Epic: VOG
News: Latest news
Web Site: Victoria Oil & Gas
Other Articles: 01-03-201026-02-201017-02-2010

Crude Oil

Victoria Oil & Gas

The company's principal assets are 60% of the Logbaba gas and condensate project in Cameroon and 100% of the West Medvezhye gas field in Siberia, Russia.

Logbaba is located in Douala, the economic capital of Cameroon. The field was discovered in the 1950s with all four exploration wells, flowing gas at rates up to 62Mmcf/d.

West Medvezhye is situated in the Yamal-Nenetsk region of Siberia. An independent reserve audit estimated prospective resources for West Med of over 1.1 BnBOE.

 

CLICK HERE FOR FULL ANLAYSIS OF VICTORIA OIL & GAS
Tuesday, February 09, 2010

Victoria Oil & Gas spuds La-106 well at Logbaba gas and condensate field, to commence La-105 testing

company news image

Victoria Oil & Gas (AIM: VOG) has spudded well La-106 at its Logbaba gas and condensate field in Cameroon after changing its design to target the most prospective areas of the existing discovery.

La-106, which is the second well to be drilled by the company on the field, will twin well La-101, which was drilled by Elf SEREPCA in 1954. The well will be drilled from the same well-pad as well La-105 and will be deviated to a bottom-hole location around 390 metres north-west of La-101 to access one of the most prospective areas of the existing discovery.

Last week, the company said that results from a passive seismic spectroscopy survey at showed a major and previously unknown potential hydrocarbon accumulation, while also indicating best prospectivity in the existing structure to the north of it, which, as a result, impacted the design of La-106. The proposed depth of the well is 8,700 ft (feet), and drilling is expected to take 60 days.

While La-106 is being drilled, testing of the gas-bearing zones of La-105 will be undertaken and this testing is expected to commence in February.

The company said that the La-105 open-hole log data and the passive seismic survey results are expected to justify significant additional proved and probable reserves to the 104 Bcf (billion cubic feet) of gas for the field estimated by RPS Energy in 2008.

VOG is looking to supply natural gas to industrial customers in Douala, saying that half the existing market has already signed gas off-take contracts and letters of intent at a price of US$16 per tcf (thousand cubic feet) of gas.

The proven and probable reserves for Logbaba are currently estimated at 106 billion cubic feet.

Broker Fox-Davies Capital (FD Capital) welcomed the news, saying that the well was spudded on time and operations at Logbaba were now running smoothly after a tight deadline imposed by the authorities and the onset of the rainy season caused problems for the drilling operations at La-105.

FD Capital pointed out what it said was an interesting part of the announcement, which was that the testing of La-105 will start while La-106 is being drilled instead of waiting until the completion of drilling. The broker said it took a lot of encouragement from that as the company made it a priority to get an updated report as soon as possible.

The note said that La-106 will target the “sweet spot” unravelled by the survey and will expectedly penetrate better reservoirs than any other wells previously drilled at the project. Should that be the case, it will materially de-risk the positive passive seismic anomaly to the north of Logbaba, taking the stock to a materially higher price level, said FD Capital, adding that the project was turning out much better than expected and the reserves in the licence could be a multiple of initial expectations, making the broker’s target of 9 pence look “very solid” with a prospect of an equivalent size to Logbaba contributing an additional 8 pence of value.

The 'buy' recommendation for the stock also was retained.

NewsNow icon AddThis Feed Button
Register here to be notified of future Victoria Oil & Gas articles.

Other Victoria Oil & Gas articles

More articles ►

Other Victoria Oil & Gas news

More news ►

Investors interested in Victoria Oil & Gas recently viewed


No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.