(Business in Cameroon) - The Ministry of Mines, Industry and Technological Development recently extended Gaz Du Cameroon's (GDC) exploration license on the Matanda block by an additional one-year. This new extension will take effect on December 17, 2020. In accordance with Cameroonian substantive law, this authorization will be confirmed in the coming weeks by a presidential decree.

It should be recalled that the Matanda block is adjacent to the Logbaba production area. It thus offers an easy monetization path for its gas potential which, in July 2020, rose to 1,196 billion cubic feet of risk-free gross prospective resources, compared to the initial estimate of 903 billion cubic feet.

This increase is the result of a detailed internal outlook assessment, which identified 19 gas prospects in shallower Tertiary reservoirs in addition to seven prospects in deeper Cretaceous reservoirs.

It should also be noted that during the first phase of exploration that began in 2018, GDC conducted an Environmental and Social Impact Assessment (ESIA), which is expected to be completed in Q1-2020. This will ensure that all aspects of environmental and social risks have been assessed and the necessary precautions taken. A work program will be kicked off next year and includes the drilling of an exploration well but the company will soon finalize the ranking of the main onshore prospects.

With a surface area of 1,235 km², the Matanda Block is 75% operated by GDC (a subsidiary of Victoria Oil and Gas) and 25% by Afex Global Limited. According to the production sharing agreement, the Cameroonian public hydrocarbon corporation (SNH) has a 25% right of return once an exploitation license is granted.

Olivier de Souza