Cameroon based gas and condensate producer and distributor, Victoria Oil & Gas, has announced that its wholly-owned subsidiary, Gaz du Cameroun S.A. (GDC) has received approval for the Matanda Block license from the Ministry of Mines, Industry and Technological Development.
The 1,235 square kilometres Matanda Block is adjacent to GDC’s Logbabab concession. GDC was assigned 75% ownership and became the operator of the Matanda PSC in December 2018 with Afex Global Limited (AFEX) holding the remaining 25%. Société Nationale Des Hydrocarbures (‘SNH’) has a 25% back in right after an Exploitation License is granted.
In July 2020, the company reported a material increase in the management’s estimate of prospective resources onshore Matanda. The prospective resources increased from the previously reported 903 Bcf to 1,196 Bcf. The increase is because of a detailed internal prospect evaluation which identified 19 gas prospects in shallower Tertiary-aged reservoirs, plus seven (7) prospects in deeper, Cretaceous-aged prospects.
The Company has been carrying out an Environmental and Social Impact Assessment (“ESIA”), which includes engagement with local communities. The ESIA is to be completed in Q1 2021. It is to ensure that all the all aspects of risks to the environment and social factors will have been assessed and necessary precautions taken, per the requisite rules and regulations, to guarantee minimal impact on the environment ahead of drilling preparation as the work programme requires the drilling of an exploration well.
Commenting in the release, the Chief Executive Officer of VOG, Roy Kelly said, “We are extremely pleased to have received this extension for one year. The first well will undoubtedly be in the onshore area where nearby wells in the Bomono license have derisked the shallower plays, and proximity to the GDC-operated gas distribution infrastructure allows easier monetisation of discoveries. We are further encouraged by the ESIA that will soon be completed. We thank the Minister and also SNH for expediting this extension.”