16 November 2021

Victoria Oil & Gas Plc

("VOG" or the "Company")

Additional Perforations added to the Upper Logbaba Formation in Well La-108

Victoria Oil & Gas Plc, whose wholly owned subsidiary, Gaz du Cameroun S.A. ("GDC"), is the onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, is pleased to provide an update on Logbaba well La-108.

·    Perforations have been successfully added to well La-108 safely and under budget

·    As a result, an additional 42m of net pay has been added in the Upper Logbaba Formation in the well

·    In the first few days of production, the well has supplied up to 5.7 MMscf/d of production (all that has been needed), with a flowing wellhead pressure of over 200 barg (a unit of pressure)

Additional perforations have been successfully added to well La-108, with operations carried out safely and under budget, despite several periods of thunderstorms with nearby lightening strikes, during which operations were suspended. Because of the depth and pressure difference between the upper and lower sands of the Logbaba Formation, it is traditional to perforate the Logbaba wells in two or more stages to avoid excessive differential pressures in the wellbore. A further 42m of net pay has been added in the Upper Logbaba Formation in well La-108 as a result of the recent perforations, adding to the 30m of net pay that was perforated in November 2020 and put on production in February, 2021.

Well La-108 was shut in on 9 June 2021 to perform a pressure build-up ("PBU"), and the shut--in wellhead pressure ("SIWHP") had built up to 229 barg at the commencement of the perforating operation, and indeed was continuing to build up. This compares to an initial SIWHP of 177 barg on 10 June, a day after the well was shut in for the PBU.

The perforating operations were performed using a managed underbalance system to provide optimal downhole conditions on reservoirs with pressures up to 350 barg and was performed without a drilling rig using electric wireline and through-tubing perforating guns. The whole project was completed in 6 days and has come in some 38% under budget.

Well La-108 was returned to production on 5 November, and is being used to meet the majority of demand for the time being, so that we can observe the well's performance.  In the first few days of production, the well has supplied up to 5.7 MMscf/d of production (all that has been needed), with a flowing wellhead pressure of over 200 barg, and little or no water production (as expected). For comparison, recent flowing wellhead pressures for wells La-105 and La-107 were in the range 21 to 46 barg, depending on flowrate.

The gas currently being produced from well La-108 has a Calorific Value (CV) that is about 4% higher than the Logbaba Field average, and the condensate is slightly lighter than the field average.  In the short-term we expect that only these new upper perforations will flow until there is pressure equalisation with the lower perforations. It will take some time to acquire sufficient data to determine how the well will perform over the long term, and we will provide further updates when we have a better understanding of the reservoir as a whole.

Roy Kelly, CEO of VOG said:

"I am absolutely delighted with this result, delivered safely and efficiently by our excellent team of staff and contractors, which included a local oilfield services company providing the wireline services. We saved time, money and any environmental risks by omitting any testing to flare, and the well was handed over to the production department straight after the perforating phase.

Only now do we have all sands in the development wells perforated, which will eventually allow us to gain a clearer understanding of deliverability and reserves from the current well stock. This takes time but is necessary to ensure we get supply-side forecasts right going forward; as we have seen, there is huge variability in the performance of the wells."

For further information, please visit www.victoriaoilandgas.com or contact: 

Victoria Oil & Gas Plc

Roy Kelly / Rob Collins                                                                    Tel: +44 (0) 20 7921 8820

Strand Hanson Limited (Nominated and Financial Adviser)

Rory Murphy / James Dance                                                        Tel: +44 (0) 20 7409 3494

Shore Capital Stockbrokers Limited (Broker)

Mark Percy / Toby Gibbs (corporate advisory)                           Tel: +44 (0) 20 7408 4090

Jerry Keen (corporate broking)

Sam Metcalfe, the Company's Subsurface Manager has reviewed and approved the technical information contained in this announcement in his capacity as a qualified person under the AIM Rules. Sam has over 30 years of industry experience, and has an MSc in Petroleum Engineering from The University of Texas at Austin.