(Business in Cameroon) - British gas producer and distributor Victoria Oil & Gas (VOG), parent company of Gaz du Cameroun (GDC), announced last December 23, it has secured a new 1-year extension of its Matanda exploration license.
The new extension, which became effective on December 17, 2021, is the second secured by the oil and gas firm after the one it was granted in November 2020. It will allow VOG and GDC to finally drill the exploration and appraisal well announced since 2020.
In June 2021, VOG announced it had secured a US$7.5 million (over XAF4 billion) financing through an agreement with US dealmaker Meridian Capital. “We are delighted and appreciative that our major shareholder is backing our efforts to resolve legacy issues and increase our working capital. The use of such funds includes helping us progress our very prospective Matanda license,” commented Roy Kelly, CEO of VOG.
The Matanda block concerned by the license extension covers a 1,235 square kilometer area close to the Logbaba gas fields operated by GDC in Littoral Cameroon. In July 2020, its gas potential was upgraded from 903 billion cubic feet to 1,196 billion cubic feet. The license is 75% owned by GDC and 25% by Afex Global Limited. According to the production-sharing contract, the National Hydrocarbons Corporation (SNH) will receive a 25% stake in the project once a production license is issued.