Victoria Oil & Gas to raise 30% output in 2016

Victoria Oil & Gas (LON: VOG) expects to increase gas supply to customers around the Cameroon city of Douala by 30% in 2016 and drill two new wells on the Logbaba field.

Subsidiary Gaz Du Cameroun operates and has a 60% stake in Logbaba, from which it has started to supply gas to business customers in and around Cameroon’s rapidly growing second city.

Production is currently running at 15mmscf/d and a 'primary objective' in 2016 is to exceed 3.7 Bcf of annual production, a 30% increase over 2015.

Infrastructure plans include designs for the gas treatment plant capacity to rise to 40mmscf/d, adding 13km to the pipeline network and to develop new product areas such as Compressed Natural Gas (CNG).

Kevin Foo, chairman, said: "In 2015, VOG came of age in terms of operational and financial performance.

“In 2016, we are focused on exceeding the record production we achieved last year.

"Despite the massive fall in the price of oil, GDC has protected its customer base and maintained its gas prices at $9 to $16/mmbtu, which reflects the true value and convenience of Natural Gas.

“We expect success from the two well-drilling programme this year and are very focused on continuing to build the Group as a significant energy provider in Cameroon and beyond."