4th Apr 2014 09:43
LONDON (Alliance News) - Victoria Oil & Gas PLC said Friday preparation work has begun in preparation for the extension of a one-kilometre gas pipeline extension under the Wouri river to Bonaberi area in Cameroon.
The company's operating subsidiary Gaz du Cameroun SA has completed initial project planning and preparation. The extension is scheduled to begin in May and be completed 40 days later.
Key customers have been identified, and Victoria said that 1.03 million standard cubic feet per day customer supply agreements have already been signed in the Bonaberi area.
The company believes that there is an immediate market of 2.41 million standard cubic feet per day is available in Bonaberi based on the conversion of thermal boilers from heavy fuel oil to natural gas.
The company said that the installation of its first electricity generation set installations is going well, and it expects them to be online with customers in May.
It expects to have average production levels across its business of around 4 million standard cubic feet per day by June, in light of generation set installation customers coming online. Production levels remained steady at 3.2 million standard cubic feet per day throughout March.
Victoria Oil & Gas expects to see its production costs reduced when it completes the purchase of its rented Gas Treatment Plant before June.
The company also announced plans to develop a compressed natural gas business by early 2015, and said it had entered into discussions with strategy and financial partners to set a business in Douala.
Shares in Victoria Oil & Gas were trading down 2.6% at 1.03 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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