Victoria Oil & Gas (AIM: VOG) reaffirmed its commitment to bring in revenues form its Logbaba gas and condensate project in Cameroon as soon as possible after results from a passive seismic spectroscopy survey suggested that the best areas on the field were yet to be explored and discovered a much larger prospect within the license block, which the company said could potentially change its size and future.
In the letter to shareholders released today, VOG said that it was looking to design an integrated strategy marketing and monetisation the Logbaba resource that will be flexible enough to adapt to the changing nature of the field, while working with local consumers to tailor the pipeline construction process to the demands of the market.
Following the results of the study, the currently drilled well La-106 was deviated to a bottom-hole location north-west of well La-101 to access one of the most prospective areas of the existing discovery.
Another well at the property, La-105, has recently been completed as a production well after confirming the presence of at least 65 ft (feet) of good quality gas-bearing sandstone reservoir and another 260 ft of gas-bearing sands that could potentially be productive.
“We still have a great deal of work to do before we see first revenues but there will be no let-up in our dedication to the project. Delineation of the resources from the passive seismic spectroscopy is obviously excellent news and highlights that the true potential of Logbaba is still to be discovered,” said Chairman of Victoria Oil & Gas Kevin Foo.
The company has been in touch with local and international banks with regards to the funding of the pipeline construction and expected further progress as solid data from the wells becomes available.
VOG also provided an update from its other project, the West Medvezhye gas field in Siberia, where preparations for an IPDS passive seismic spectroscopy survey on the north-eastern section of the block are already underway with the survey set to start in March at the earliest. The company is currently focusing on necessary permitting, import of equipment and construction of the ice roads to the exploration area.
Targets for new wells at West Medvezhye will be picked after surveys are carried out and their results are analysed. VOG is considering undertaking surface geochemical analysis and gas tomography, low cost exploration tools that have been extensively used in the Siberian tundra as a method of de-risking large areas of unexplored acreage before a conventional seismic survey and drilling.