Victoria Oil & Gas gets go-ahead for interest in Matanda

7th Apr 2016 16:32

(ShareCast News) - Integrated natural gas producing utility Victoria Oil & Gas announced on Thursday it had received approval from the Government of Cameroon for a 75% participating interest in the Matanda Production Sharing Contract to be transferred to its subsidiary Gaz Du Cameroun Matanda (GDC), from Glencore Exploration Cameroon.The AIM-traded company confirmed the remaining 25% participating interest was held by Afex Global.Its board said that, as outlined in the announcement of 18 February, Victoria would become Matanda's operator through its 100% owned subsidiary.Details of the work programme would be announced following an operating committee meeting between GDC Matanda, Afex and the Cameroon national oil company Société Nationale des Hydrocarbures du Cameroun.Matanda covers an area of 477 square miles, and is highly prospective for significant natural gas and gas condensate resources, Victoria's board said.GDC Matanda would concentrate on the onshore areas of Matanda near the existing Logbaba field, with the aim of increasing reserves of gas to be sold into existing and new markets within Cameroon.Work was expected to commence during the fourth quarter of this year, and would initially involve interpretation of a large databank of 2D and 3D seismic information, with the aim of identifying a drill target."We are pleased with the approval of our 75% assignment over the Matanda PSC and are keen to begin our work programme," said Victoria chairman Kevin Foo."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," Foo commented.Trading in Victoria Oil & Gas shares was choppy throughout the day, but remained in the black. At 1545 BST, they were up 1.54% at 39.6p.