LONDON (Alliance News) – Victoria Oil & Gas PLC said Wednesday it has received approval from Cameroon President Paul Biya for its acquisition of a 75% interest in the Matanda production sharing agreement licence from Glencore PLC.
Victoria’s wholly owned subsidiary Gaz du Cameroun SA, Glencore Exploration Cameroon Ltd and Afex Global Ltd received the presidential decree for the transfer of interest in licence.
The decree confirms approval of the transfer by Glencore of 75% of its participating interest in the production sharing agreement to Gaz du Cameroun and 15% of its participating interest to AFEX Global, which previously held a 10% interest.
Victoria first agreed the deal, for an undisclosed amount, back in early 2016.
The Cameroon-focused gas and condensate producer and distributor said Gaz du Cameroun will become operator and will assume responsibility for carrying out the work programme agreed with Cameroon government. The agreed obligation for the work programme is one exploration and appraisal well plus reprocessing of existing seismic in the first two-year period of the production sharing contract.
The Matanda licence covers an area of approximately 1,235 square kilometres and is highly prospective for natural gas and gas condensate, Victoria said. It contains the previously discovered offshore North Matanda field with current 2C gross recoverable gas resources of 150 billion cubic feet and 6 million barrels of condensate and upside of 1 trillion cubic feet of gas.
Shares in Victoria Oil & Gas were up 0.4% at 22.95 pence each on Wednesday.
By Tapan Panchal; firstname.lastname@example.org