Victoria Oil & Gas notes momentum in business after productive first quarter

Cameroon energy utility Victoria Oil & Gas has reported significant momentum in the business after a productive first quarter of 2017, with improved gas sales and record sales achieved in March.

"The drilling of planned production wells La-107 and La-108 continued and the Board believes the discovery of 125m of gas sands in the Logbaba formation of La-108 is very encouraging," said chief executive Ahmet Dik.

"The Board believes that these sands will contribute additional Proven reserves and be at least as productive as well La-105," said Dik.

Victoria Oil & Gas reported a 10.7% rise in average gas production from Logbaba to 14.57mmscf/d, from 13.16mmscf/d in the same period a year previous.

Gross Logbaba gas sales firmed to 1153mmscf for the quarter, up on the year-ago's 1131mmscf.

"Our asset base has been transformed over the last twelve months with the signature of an agreement to acquire an 80% working interest in the Bomono licence," said the CEO.

"Very encouraging results from our initial Matanda evaluation enhance the possibility of early identification of drilling targets and updated gas inventory estimates."

Dik said additional acreage at Matanda and Bomono would allow Victoria Oil & Gas to help realise its plan for major gas production to meet the large unsatisfied energy demand in Cameroon.

At 14:50 GMT, shares in Victoria Oil & Gas were down 6.49% to 72p each.