Victoria Oil and Gas update on drilling in Cameroon

Victoria Oil and Gas update on drilling in Cameroon

Thermal customer Connections and Drilling Update, Cameroon

The Company is pleased to provide an update on both the gas pipeline expansion and ongoing drilling programme in Douala, Cameroon.

Pipeline Extension

Gaz du cameroun S.A. ("GDC"), the Company's Cameroon gas producing and distribution subsidiary, has with success completed each the phase ii & phase iii of the Bonaberi pipeline extension programme. GDC has laid a total of 15km of gas pipeline, including spur lines and metering points to seven new customers. 3 of the new customers are currently consuming gas for thermal applications. The remaining four thermal customers are regular to commission their burners during Q1 2017. The estimated consumption from the seven new customers are going to be 600,000 scf/d.

The Bonaberi extension of the central pipeline is an element of the company strategy to supply gas to the Western industrial area that is becoming a new hub for industrial developments utilising Douala's port, power and road networks. GDC has established itself as an important provider of energy to industry either through thermal gas offer or via gas to power and had anticipated the Bonaberi growth and can be able to meet the growing gas demand in this area.

Customers presently online or scheduled to be online in Jan, all using gas for thermal use, include:

•           Maya & C palm oil refinery

•           OK Foods             Biscuit and sweet manufacturer

•           Agrocam              Specialists in poultry hatchery, egg and corrugated carton packaging.

•           NAYA                    Food processing

•           BATOULA             Plastic processing

•           BOCOM car battery recycling and steel products

•           Camaco                Cocoa processing

Drilling Update

Drilling of wells La-107 and La-108 is continuing and GDC is working with its contractors to create up for the delayed begin to drilling primarily due to lightning strikes during rig up.

The Company is pleased to announce that GDC has with success drilled and cased the 17½" section of La-107 to 1004 m and that we are preparing to drill the 12¼" section to 1600m wherever we'll set the 9⅝" production casing prior to drilling the reservoir section in 8½" hole.

The 17½" section of La-108 has additionally been drilled and cased to 1173m and its 12¼" section will be drilled after the 12¼" section of La-107 is completed.

The 2016/17 drilling campaign at Logbaba is designed around a 'batch drilling' approach. As a well is drilled the equipment, drilling fluids, drilling services and specialist personnel needed vary for every hole section. in a batch drilling programme the rig is moved back and forth between the wells, progressing through all the hole sections till the well is completed, that permits for a more efficient and price effective utilisation of the various services and personnel for every hole section. The Komako 1 rail mounted drilling rig is designed for this sort of operation.

The gas bearing target horizons from that it's anticipated each new wells can produce are in the upper Cretaceous (Campanian and Santonian) Logbaba Formation, that is a thick sequence of interbedded sands and shales found at depths between 1,700m and 3,200m below the surface.