Victoria Oil & Gas lands Cameroon deal approval

“Upon completion of the current Logbaba two well programme for the second half of this year, we shall turn our attention to development of Matanda," said chairman Kevin Foo.

Victoria Oil & Gas (LON:VOG) told investors it has secured government approval for its proposed acquisition of a 75% stake in the Matanda block, in Cameroon, from Glencore (LON:GLEN).

In February, VOG announced the proposed deal to acquire the large, 1,235 square kilometre, asset from Glencore.

To acquire the project VOG is committing to carry out a government approved work programme which will initially focus on Matanda’s onshore areas, located adjacent to VOG’s producing Logbaba gas field.

Initially, it will be VOG’s aim to increase reserves for its Cameroon gas utility business, and developing the gas so that it can sold into existing and new markets within Cameroon.

"We are pleased with the approval of our 75% assignment over the Matanda PSC and are keen to begin our work programme,” said Kevin Foo, VOG chairman.

“The large Matanda license area provides the company with an area over 60 times our existing concession at Logbaba and a critical strategic and geological connection between the two.

“Upon completion of the current Logbaba two well programme for the second half of this year, we shall turn our attention to development of Matanda".

Work at Matanda is expected to start in late 2016, with the early work focussing on the interpretation of a very large bank of 2D and 3D seismic data. The aim of this work will be to identify a drill target.

Precise details of VOG’s work commitments for Matanda will be announced after a forthcoming operating committee meeting between VOG’s Gaz Du Cameroun subsidiary, its new partner AFEX and Cameroon’s national oil company.