Victoria Oil & Gas plc announced Thursday that it has reached an agreement with Glencore Exploration Cameroon Limited and Afex Global Limited to acquire a 75 percent interest in Cameroon’s Matanda Production Sharing Contract.
Under the terms of the agreement, Glencore Cameroon will assign a 75 percent participating interest in the Matanda PSC to VOG, which will become Matanda’s operator through its 100 percent owned subsidiary Gaz Du Cameroun Matanda S.A. As consideration for the assignment, VOG or its subsidiaries will assume responsibility for carrying out a work program to be agreed by the Government of Cameroon.
Glencore Cameroon is currently the operator of the PSC, with a 75 percent participating interest and AFEX, a Bermuda-based exploration and production company specialising in West Africa, holds a 25 percent participating interest. Under the assignment GDC Matanda will hold a 75 percent participating interest in the PSC and AFEX will have a 25 percent participating interest.
GDC Matanda and AFEX plan to submit a new work program to the Government of Cameroon for approval and expect to commence the first phase of seismic data acquisition in the fourth quarter of 2016.
Commenting on the transaction, Victoria Oil & Gas plc Chairman Kevin Foo said in a company statement:
“This is a very exciting and fulfilling acquisition for VOG and its expansion plans. The North Matanda Field has considerable potential and we believe is an extension of the Logbaba structure and at 1,235 square kilometres (476 square miles), the block is over 60 times larger than our existing concession. VOG has worked closely with AFEX, Glencore Cameroon and SNH, the Cameroon national oil company, to bring this opportunity to a successful conclusion. We believe the assignment and operatorship of the Matanda block is a major step towards allowing the group to meet the growing energy needs of the Cameroonian economy.”
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