Victoria Oil & Gas (VOG) has announced that its wholly-owned subsidiary Gaz du Cameroun SA (GDC) will provide a US$26m debt facility to support plant expansion at Logbaba
The debt facility has been secured with BGFIBank Cameroon SA. GDC has a well-established banking relationship with BGFIBank, and this new facility extends the existing loan of US$4.4mn. VOG aims to avoid recourse to equity markets, while ensuring gearing is restricted to appropriate levels as the company continues to build value.
VOG will also increase gas production in the Logbaba project by 30 per cent during 2016, following the 107 per cent increase in average daily production achieved in 2015.
The key elements of GDC’s expansion programme to meet the Cameroon market’s demand for gas are to drill one twin well and one step out well at the Logbaba plant site with the objective of increasing production reserves, to extend the Bonaberi pipeline to customers with gas service agreements in place and to increase gas processing plant capacity in three phases to handle expected increased gas flow from wells.
VOG also aims to fund the Logbaba development through operating revenues and capital contributions from GDC and RSM Production Corporation, its 40 per cent partner.
