Bowleven and Victoria Oil & Gas agree to Bomono farm-out

LONDON -- Bowleven plc, the Africa focused oil and gas exploration group and Victoria Oil & Gas Plc, an integrated energy company with operations in Cameroon, both trading on AIM, are pleased to announce that they have signed a farm-out agreement relating to the Bomono production sharing contract (Bomono PSC).

Gas produced from the Bomono PSC will be fed into the customer distribution network owned and operated by Gaz du Cameroun S.A. (GDC), a wholly owned subsidiary of VOG.

First gas supply to the GDC network is anticipated to start following granting of a Provisional Exploitation Authorization (PEA) and other approvals.

Strategic rationale:

This Agreement, which has been negotiated by the parties over several months, aligns Bowleven’s intention of realizing near term value from Bomono through commercial production of its Bomono gas deposit with VOG’s business of commercializing local onshore gas deposits using its established gas infrastructure and customer network.

The transaction provides the ability to minimize the timescale to first production and optimizes the proven advantages of Bowleven’s upstream expertise and VOG’s established gas supply business that feeds a diverse range of industries and the local power grid.

The initial plan is that gas currently suspended at Moambe be brought onstream and that further drilling be considered to supply the growing domestic market in and around the Douala area.