Cameroon

Good news. This must be the consortium that was referred to obliquely but not by name in the earlier 17th June RNS: http://www.stockopedia.co.uk/news/announcement/VOG/090617vog000915.htm

When does drilling start then?

Fairly decent update from VOG this morning on Logbaba-5 update http://www.investegate.co.uk/Article.aspx?id=201001060700090884F

Well La-105 reached a total depth of 8,920 feet on 1 January 2010 and the well is currently being logged prior to its completion as a development well. Multiple gas-bearing sands were encountered at virgin pressures at depths between 6,017 feet and 8,330 feet, which can be correlated to those found and tested in the nearby well La-103. Well La-103 flowed at rates from 5 to 12 million cubic feet of gas per day from individual sands when drilled in 1956.

The data obtained whilst drilling showed in excess of 300 feet of gross pay and also indicated the presence of over-pressured shale gas in a significant interval. After logging, a 7-inch liner will be run to isolate the sands for future testing and production. Further detailed information on La-105 and drilling of the next well at Logbaba, La-106, will be announced in due course.

So they didn't drill to 10000 target depth but am happy with drilling result. Market needs to see a well test result though so I hope Kevin Foo gets his skates on here and finalises this important flow test and gets it tested ASAP.

SP has recovered frommid december blues of 4.5p to approx 6p this monrning.

JPGH - holder with finger touching the sell button.

http://www.fox-davies.com/media/107438/vogflashnote6january2010.pdf

Fox Davies broker note this morning.

http://www.investegate.co.uk/Article.aspx?id=201001190700057398F Logbaba Update.

Open-hole logs have been run at Well La-105 and the well has been cased with a 7-inch production liner between 5,950 and 8,750 feet, measured depths.

The logs have indicated the presence of at least 65 feet of very good quality gas-bearing sandstone reservoir plus at least an additional 260 feet of gas-bearing sands that may prove to be productive when tested. La-105 is now being completed as a production well. Immediately following the La-105 completion the rig will be moved about eight metres to the adjacent surface location on the Logbaba drilling pad and the La-106 appraisal/development well will be spudded.

La-105 will be flow tested during the La-106 drilling operations. La-106 is to spud in early February. It will be deviated to target the productive sands of the Logbaba formation, twinning La-101.

So flow testing to happen in February, with possible upside from what appears to be a tight 260ft section. I kind of treat this as "a  news deferral" RNS so I dont expect much SP movement at all until spudding is announced. Will hang on until then.

Fox Davies field trip note on visit to Cameroon

http://www.fox-davies.com/media/117540/vogflashnote21january2010.pdf

reiterate their 8p buy recommendation.

Overall we came back with a very positive view of the Company and the team. They are a small operator with limited resources and had to establish operations in Africa, with little country experience and within a very short time frame.

However, they are learning very fast and have proven they can operate successfully. The macro-economic and broad energy picture offers a very supportive environment and we believe Victoria Oil & Gas is uniquely placed to take a ignificant advantage in that market at a very early stage.

Recommendation: We maintain our Buy rating on the stock with an unchanged price target of 8p.

Is it true that drill (and all overrun) costs are payable to a Kevin Foo Company?

JPGH

VOG signed a deal in July 2009 with Cameroon Holdings (CH). CH was to drill the two wells, meeting the licence requirements. CH’s owners include a UK drilling company, PR Marriott, and a company linked to Victoria’s chairman, Kevin Foo, HJ Resources.

CH is to provide a 1,000-horsepower drilling rig and crew at a discounted rate, along with US$4-10 million in cash. In return, it will take a production royalty along with an option to provide step-in finance, should Victoria need additional funds. In this event, it would receive interest and possibly security over the project rights.

CH has agreed to participate in the work in exchange for a production royalty of 7% of the company’s gross revenue over the project’s life.

VOG announce very good well test results for Logbaba drilll this morning

see http://tiny.cc/Test688

Test results from Well La-105 at Logbaba Gas and Condensate Project, Cameroon

 ·    Well La-105 tests at rates in excess of 55 million cubic feet of natural gas and 1,000 barrels of condensate per day (together approximately 10,000 barrels of oil equivalent per day) between depths of 7,005 - 8,500 feet from Lower Logbaba and Upper Logbaba D sands

·    Production rates from these sands confirmed as being sufficient to satisfy industrial demand in Douala with Upper Logbaba A - C sands yet to be tested

·    Reassessment of independent reserve estimates for the field expected in Q2 2010

·    Exploration permit for Logbaba extended for a further six months until 20 August 2010

 Victoria Oil & Gas Plc, (AIM: VOG), the oil and gas exploration and development company with assets in Cameroon and the FSU, is pleased to announce preliminary results from testing operations at Well La-105 at its Logbaba gas and condensate project ("Logbaba") in Douala, Cameroon

So, resources/reserves are there (subject to reconfirmation/CPR upgrade), well deliverability is not in question, fudsn were raised last week so onwards and upward for VOG in Cameroon.

Lets hope the added bonus of condensate and rich gas doesn't present too much economies of scale problems with the small proposed 10-15 MMscfd gas treatment plant.

Market must have got wind of this as SP began to move since early yesterday am, ending up 17% on the day, in some may have known a few days before this, what with last weeks 3.25p placing.(nice tidy 33% profit so far.....lets see some big sales start to come in now)

JPGH