CAMEROON: Victoria Oil and Gas Provides Q2 2021 operational update

· Sales : 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.

 · La-108 Performance: The well produced a cumulative 0.467 Bcf before it was shut-in to allow us to perform a pressure build up (“PBU”).  The other wells are able to satisfy current demand.

 · Matanda: Well planning continues and tendering for long lead items and key equipment and services has commenced. 

Roy Kelly, Chief Executive   of Victoria Oil & Gas, commented :

“We are very pleased that the team has delivered another solid quarter during which some customers increased organic demand, although we are conscious that we are now heading into August which is usually a slower month. Operationally, I am delighted to report that in June GDC passed one million man-hours without a single Lost Time Incident, a credit to all the staff and contractors. 

We are considering adding perforations to well La-108, more than doubling the net pay, and this is being discussed with partners. Such is the depth and pressure difference between the top and bottom of the reservoir that perforating must be done in two stages. Adding perforations could increase the well’s productivity, reduce the overall water cut and of course allow us to access all of the well’s connected gas volumes.

La-108 Performance

Together with the volumes produced during testing last year, the well has produced a cumulative 0.467 Bcf to date (over 111 days), and it had been supplying the majority of the gas produced whilst it was on production. La-108 was shut in on 6 June, the other wells meeting the needs of the customers, enabling us to carry out a long-term PBU, which will allow us to learn more about the reservoir system that it has been producing from.

MATANDA UPDATE 

In addition to progressing the well planning of our first well in the Matanda licence, we have presented the farmout opportunity to a number of parties who continue their evaluations. 

WEST MED UPDATE 

A period of exclusivity with a potential buyer expired at the end of May 2021, and we continue discussions with that counterparty though we have not renewed the exclusivity at this time as we are engaged with other parties who have expressed an interest. 

LITIGATION UPDATE

The arbitration in Texas, USA under ICC rules (initiated in October 2018) was heard at the end of April, and we await the Panel’s findings, likely to be announced in August or September.

The arbitration in London under UNCITRAL rules (initiated in February 2020) will be heard at the end of September.