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3. Key Points
o Victoria Oil & Gas Plc (VOG) is emerging as a
significant player in natural gas production
o Logbaba gas and condensate field in Douala,
Cameroon, is the only onshore gas discovery in the
country
o The West Medvezhye (West Med) project in Siberia
has independently estimated recoverable
prospective resources of over 5 Tcf of gas
o Logbaba is poised to deliver first cash flows and
profits for VOG
o Over 300 feet of gross sandstone pay in the first and
second wells
o In-principal agreements signed with industrial
customers
o First revenues from Logbaba targeted in Q4 2010
o VOG boasts a balanced asset portfolio strategy
3
4. Logbaba: First Mover Advantage
o The Logbaba field represents a unique opportunity
to dominate the nascent natural gas market in
Cameroon
o Competitive advantages:
The field lies beneath the major industrial city in the
Central African Region
Agreements for gas off-take already signed with industrial
customers in Douala
The only onshore gas discovery in the country
All facilities (drilling, processing and pipeline) will be
owned by VOG
Pipeline will be the only municipal gas pipeline in sub-
Saharan Africa
o Plans announced to triple Cameroon power
generation capacity in the next 10 years
Government priority for domestic market for next 30 years: 75
4 MMcf/d for electricity and 25 MMcf/d for industry
5. Cameroon: Heart of Central Africa
o Cameroon is a member of the ECCAS
Economic Community of
Central African States
(ECCAS)
o Members share trade
markets and currency
o Douala is the deep-water port
and industrial heart of the
region
o The city is the most
expensive in Africa
o Major companies such as
Guinness and Nestle have
facilities there
o Rio Tinto Alcan have a major
aluminium smelter at Edea
close to Douala
o Douala handles around 95%
of import/exports for
Cameroon, Chad and CAR
o Logbaba is located in the
5 eastern suburbs of Douala
6. Cameroon Gas: No Competition
o Logbaba remains the only onshore natural gas discovery in
the country
o Offshore production cannot compete with onshore in
servicing local industrial markets
o Total currently flaring all associated gas production from its
offshore fields (approx. 50 MMcf/d)
o Due to Logbaba’s position and development, VOG also has
the opportunity to beat larger operators in feeding new
power projects
o Perenco’s offshore Sanaga Sud field yet to come into
development despite location next to Kribi power station
o Limbe power station, north of Douala, relies solely on liquid
fuels despite Total’s offshore discoveries nearby
6
8. Logbaba: Well La-105 Drilling
o La-105 was drilled to a total
depth of 8,920 feet
o Multiple gas-bearing sands
with over 300 feet of gross pay
between 1,836 and 2,540 m
correlating to La-103
o La-105 was completed as a
production well
o Logbaba wells are more
complex and difficult to
control than predicted
o Chronic lack of oil and gas
infrastructure
o Drilling progress being far
slower than expected due to
the need for heavier mud
8 weights.
9. Logbaba: Encouraging Early Results
Due to encouraging LWD GR/Res Log from La-105
initial results,
significant
additional rig-time
and expenditure
was devoted to
subsurface data
acquisition to better
evaluate the
reservoir rock and
fluid properties. Top Logbaba Fm at 1,735m
TVDRKB
This and the Sandstone
application of latest
technology are
enabling VOG to Sandstone
realise the true
reservoir and well Sandstone
potential at
Logbaba. Sandstone
9
10. Logbaba: Well La-105 Testing
o Multiple pay zones tested at
La-105 Testing
depths between 7,005 - 8,500
feet.
o Rates between 11 - 56 million
standard cubic feet per day
(MMscf/d) of natural gas and 210
- 1,000 barrels per day of
condensate. Flowing wellhead
pressures varied between 2,750
- 4,552 psi.
o The Upper Logbaba A through C
sands, although indicated as the
best quality hydrocarbon-bearing
sands encountered in the well
logs, were not tested as the well
indicated more than sufficient
production capacity to meet
10 initial gas demand of 8 MMscf/d.
11. Logbaba: Well La-106 – Initial Data
Drilled deeper than planned to 10509 ft due to the better than
expected observed sand quality in the Lower Logbaba
sections.
Multiple gas-bearing sands encountered between 5482 feet
and 10400 feet (measured depth) - Over 300 feet of gross pay
Top most sand starts at 5482 ft (1671m)
Example of deeper sand 9100 ft (2773m)
11
12. Logbaba: Further Exploration
o 90% of the block is as-yet Passive Seismic Survey
unexplored
o In late 2009, a passive
seismic survey was
commissioned
o Passive seismic is a
direct hydrocarbon
indicator
o Significant new structure
outside current drilling
location
o Best location on the current
structure is as yet undrilled
o The new accumulations lie
outside the area evaluated
by RPS
12
13. Vertically Integrated Strategy - Pipeline Route
VOG plans to install and commission a gas processing facility
and its own gas pipeline to the industrial customers
Approx 85% of
industrial market
within 10km
Wells 105+106
and processing
facility
13
14. Production Facilities Conceptual Engineering Process
Two production concepts agreed by VOG Board:
Low pressure gas distribution in polyethylene pipe to industrial customers in
Douala with an initial demand of 7 to 8 MMscf/d;
10 MW leased temporary power plant using 2.8 MMscf/d gas delivering power
at 90 kV to the Logbaba substation.
14
15. Concept Block Diagram
Flare
~
LP LP
Wells Well Manifold Separator ~
Pipeline
Chokes Skid System
(Condensate)
Pressure
Let Down
~
~
Station
Condensate
Storage Power
Generator
Condensate To Industrial
Tanker Consumers
Switchgear
Loading
Condensate Transformer
Diesel
Tankers
Generator
(own use)
Resurfaced Transmission
Road Line
15
To Limbe Refinery To Substation
16. Front End Engineering Design (FEED)
Data collection studies
We have commenced and nearly completed FEED
studies
Graphical Information System Project to merge satellite data
with site and pipeline route survey
Pipeline Route Selection and Network Design
Definition of Customer Conversions
Logbaba Site and Pipeline Route Survey
Civil works
Soil sampling and analysis
Logbaba Site-
• Essential requirements: Process and Power Plant
• Accommodation, offices and warehousing
Pipeline construction and installation
Pre-qualification of Cameroon Civils Contractors
16
HV Transmission Line to Logbaba Substation
18. VOG: High Impact Events
o VOG is targeting first revenues in Q4-2010
o While La-106 is drilled, La-105 was tested
o Test data and superior modern logs will be incorporated in an
independent reserve re-estimation
o Installation of the facility and construction of the pipeline is
expected to be completed relatively quickly now that concept is
confirmed
18
20. Key Management Team
Radwan Hadi Sam Metcalfe Geoff Gill Kamal Jardaneh
Assistant Project Senior Petroleum Drilling
COO VOG
Manager Engineer Supervisor
TECHNICAL
Senior petroleum Over 25 yrs oil 15 yr career in oil 30 yrs of oil and
engineer with over industry experience, and gas, gas experience, 23
30 yrs experience in worldwide. predominantly with yrs as drilling
oil and gas including Has brought several Schlumberger superintendent /
in Nigeria, Ghana North Sea gas Testing and then senior drilling
and Equatorial projects into senior petroleum engineer for BP
Guinea. production for major engineer with and currently a
Former Head of corporations Blackwatch drilling consultant
Planning in ADCO
Kevin Foo Jonathan Scott Barratt Austen Titford Francois Nguene
COMMERCIAL
Commercial Gov’t Relations
Chairman Financial Director
Director Manager
39 yr career in the Former CEO of Chartered Accountant Former
resources sector Eureka Mining Plc & with more than 17 years Exploration and
including 19 years in executive director of experience, covering Production
the FSU; former MD Celtic Resources Plc both the project Manager for SNH
of Celtic Resources development and in charge of Chad-
Holdings operational phases in Cameroon
quoted natural resource Pipeline
companies.
20
21. Logbaba: Discovery
o Logbaba was discovered in
1950s by Elf SEREPCA
o Four wells were drilled by Elf:
o All encountered gas and
condensate in multiple
reservoir layers
o Three wells tested over
limited intervals with
individual sands testing 10
– 20 MMcf/d per well
o In 2008, RPS Energy
calculated 2P reserves of:
o Gas – 104 Bcf
o Liquids – 4 MMbbl
o NPV10 – $168 MM*
21
* Attributable to VOG
22. Logbaba: Well La-105 Testing continued
La-105 Targets
o The test covered horizons of
the Lower Logbaba formation,
which had not been tested
before, and the Upper
Logbaba D sands.
o The Upper Logbaba A
through C sands, although
indicated as the best quality
hydrocarbon-bearing sands
encountered in the well logs,
were not tested as the well
Elf La-103 Flow
indicated more than
Test Results sufficient production
capacity to meet initial gas
1,780 to 1,789m
4.75 MMcf/d
demand of 8 MMscf/d.
2,019 to 2,038m
12.25 MMcf/d
o The Upper Logbaba A - C
sands will be perforated and
2,051 to 2,063m
added to the completion
9.1 MMcf/d interval when required for
2,364 to 2,378m
production.
22 12.25 MMcf/d
23. Logbaba: Well La-106
o La-106 was drilled from
La-104 pad
o Well spudded on
schedule early
February 2010 and
reached a measured
total depth of 10509 feet
o Drilled deeper than
originally planned
because of presence of
sands to 10400 feet.
23
24. Pipeline Route and peripheral Customer Sites
Approx 85% of industrial
market within 10km
SABC Brewery
Wells 105+106 and
processing facility
Packindustry & CCIC
24
25. Processing & Pipeline Strategy
o VOG will install and commission its own processing facility and
pipeline
o Processing:
o Phase 1 will be a basic separation and dehydration process to
produce sales gas and liquids
Sales gas
Separation & Dehydration
Raw gas
Process
Liquids
o Phase 2 will add processing capability to extract additional
Natural Gas Liquids (NGL)
o Pipeline
o A c.10km high-pressure gas pipeline will be laid underground
to the industrial customers
o The initial section will only access the nearest customers to
the well-site, but this covers about 85% of the market
25
27. RPS Independent Valuation
RSP Energy Competent Person’s Report
Net Attributable Reserves and Resources
1P 2P 3P
Total Liquids MMbbl 0.28 2.35 4.51
Natural Gas Bcf 7.92 64.53 123.91
Total MMboe 1.71 13.97 26.81
NPV valuation at 10% $MM 18.17 168.65 412.16
Source: RPS Energy
RPS Energy undertook an
evaluation of the Logbaba
field in July 2008
65Bcf of 2P reserves with an
NPV10 valuation of $169MM
The evaluation only RPS review
encompassed a small area (~6km2)
section of the total 64km2
licence area
27
28. Social Responsibility
o VOG, through its local entity Rodeo
Development Ltd (RDL), has
strived to be an excellent corporate
citizen:
o During rig mobilisation, 300
local people were employed
o RDL currently employs about
100 people on the rig
(roustabouts, medics, safety
officers, guards etc)
o VOG has also invested in the local
infrastructure with the local council
o Local community members have
seized on business opportunities
created by RDL
28
29. Abbreviations
Bnboe Billion barrels of oil equivalent
MMboe Million barrels of oil equivalent
MMbbl Million barrels of oil
bbl/d Barrels per day
mcf Thousand cubic feet of natural gas
mcf/d Thousand cubic feet per day
MMcf/d Million standard cubic feet of gas per day
Bcf Billion cubic feet of natural gas
Tcf Trillion cubic feet of natural gas
$MM Million US$
$Bn Billion US$
km2 Square kilometres
m Metres
MMBtu Million British thermal units
MW Megawatts
tpa Tonnes per annum
CFA Central African Franc
29
30. VICTORIA OIL & GAS PLC
HATFIELD HOUSE
52-54 STAMFORD STREET
LONDON
SE1 9LX
Tel: + 44 (0)207 921 8820
Fax: +44 (0)207 921 8821
www.victoriaoilandgas.com
info@victoriaoilandgas.com
