Oil & Gas Corporate News
Victoria Oil & Gas plc (BUY £0.12) (VOG, 4.80p, ? 4.95%) released a copy of the letter sent to shareholders. Highlights: Decree signed by the President of Cameroon granting a 25 year exploitation licence with an option to extend for an additional 10 years for Logbaba field; First gas sales scheduled for beginning of Q4 2011; No further delays anticipated in executing the project to cost, quality and schedule targets; VOG fully funded through to first gas from Logbaba; Commencement of feasibility studies for an early production scheme in West Med, Russia; and termination of Falcon Option. There remain four key tasks to the execution of the Logbaba gas field development: Re-opening wells La-105 and La-106; Installation and commissioning of the leased process plant; Trenching, jointing, installation and commissioning of the gas pipeline network; and arrangements on customer sites for installation of pressure reduction and metering stations and boiler conversions.
All of the equipment required to re-open the wells, and commission and install the process plant and pipeline is now located on-site in Douala. Concerning gas sales agreements ("GSAs"), the company currently have 11 GSAs signed together with a further 10 GSAs which have been contractually agreed subject to legal due diligence and signature approval. All contracts will be signed at a price of $16 per thousand cubic feet of gas, ($96 per barrel of oil equivalent,) fixed for five years from the date of first gas delivery. Logbaba has proven and probable reserves of 212 billion cubic feet of gas (35.3 million barrels of oil equivalent). The Company?s management base case forecasts envisage a potential supply of 44 mmscf/d (7,300 barrels of oil a day equivalent) by 2014.
Heritage Oil (LON:HOIL) Plc (HOLD, £4.20) (HOIL, 234.2p, ? 2.81%) issued its Interim Management Statement for the period from 1 January 2011 to 17 May 2011. Highlights: Rig contract to drill the Miran West-3 well in the Miran Block, Kurdistan, was signed in April and the well is scheduled to spud in July 2011; Exploration drilling to commence on Miran East in Q4 2011; 3D seismic survey over the entire Miran structure is ongoing; 2D seismic survey is planned to cover southern parts of the Miran Block; Work programmes progressing in Tanzania, Mali and Malta; Development scenarios are being reviewed for Kurdistan which include phased development of oil, condensate and…
