Cameroon: Logbaba field to flow gas by end-2011

By OGJ editors
HOUSTON, June 13
– Victoria Oil & Gas PLC is installing surface facilities to develop two-well Logbaba gas-condensate field on the Logbaba concession in the city of Douala, Cameroon, by the end of 2011.

The field has 212 bcf of proved and probable reserves in the Late Cretaceous Logbaba formation. The company expects gas sales of 8 MMscfd the first year rising to 44 MMscfd by the end of 2014. Victoria said the field is Cameroon’s first onshore gas production.

Distribution pipelines are to be horizontally drilled. Pipeline capacity is 60 MMscfd, of sufficient size for the Douala industrial market over the medium term, Victoria said. Gas is to be sold under 11 completed sales agreements and 10 others pending final approval. The gas sales price is $16/MMbtu.

Condensate separated at a process plant will be stabilized and stored for transport to the Sonara refinery at Limbe, Cameroon. Condensate production is forecast at the rate of 20 bbl/MMbtu.

The field’s current proved and probable reserves are sufficient to supply an average 30 MMscfd for 20 years. In the longer term, as further reserves are proven, gas may be supplied to large gas-fired power stations connected to the grid, with either Victoria investing in an independent power producer joint venture or selling gas to third parties.

Concession interests are Victoria Oil & Gas 57%, RSM Production Corp. 38%, and Cameroon’s state SNH 5%.

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