Victoria: 'Cameroon gas sales this year'

Victoria Oil & Gas will make its first gas sales from the Logbaba gas and condensate project in Cameroon around October this year, the West Africa-focused British energy firm revealed

 

The first gas sales had been due earlier this year but the firm only secured exploitation rights three weeks ago.

Shares in the company rose to their highest levels in more than two years once the firm secured the licence, Reuters reported.

"This is a huge milestone for the company and paves the way for project delivery and the commencement of first gas sales in early Q4 2011," Victoria Chairman Kevin Foo said in a statement.

Two wells must now be re-opened and a processing plant and pipeline network will have to be installed to serve the 11 gas sale agreements that the firm has signed, he said.

Foo said that 10 more contracts were pending approval and the price of gas had been fixed for five years at $16 per thousand cubic feet of gas.

Logbaba has proven and probable reserves of 212bn cubic feet of gas.

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