Victoria Oil & Gas sees new well as 'substantial' gas producer

Victoria Oil & Gas boasted on Thursday that its La-107 well in Cameroon was expected to become a "substantial producer" of gas after drilling reached target depth and the well as cased.

The target depth of 3,180m measured depth was reached successfully at the well, and preliminary analysis indicated that the company encountered an additional 23m of net gas sand from the Lower Logbaba formation bringing total net gas encountered in the Upper and Lower Logbaba formations to 58m.

Additionally, the company said that a 4½" liner was run and cemented to case off the Lower Logbaba formation.

As well as that flow tests from La-107 now meant that subsidiary Gaz du Cameroun could place the well into production to supplement gas from nearby La-105.

Commenting on the progress of the well, chief executive Ahmet Dik said: "new gas supply is expected to come online during Q3 2017 and this should allow GDC to finalise contracts with high usage customers we have been in discussion with over the past months. It is very satisfying to have over 50m of net gas sands in La-107 'behind pipe'."

The company's shares were up 11.53% to 52.00p by 08:35 BST