ENEO Pipeline Completed, Cameroon
Victoria Oil & Gas Plc announces that Gaz du Cameroun (“GDC”) has completed laying pipeline to the boundaries of the ENEO Power Station properties at Bassa and Logbaba ahead of schedule. The 20 MW Bassa Power Station is located 0.3km from our operating northern pipeline and the 30 MW Logbaba Power Station is located 1.3km along the proposed eastern leg off our main line. The pipeline is currently under test and it is anticipated that testing will be completed by the end of this week.
ENEO requires both power stations to be on line and delivering 50MW by the end of Q1 2015 and GDC anticipates that it will complete all of its deliverables before that deadline.
GDC signed binding term sheets with ENEO in December 2014 to supply gas at minimum take or pay levels of 9mmscf/d in the January-June dry season and 3mmscf/d in the July-December wet season. The Agreement with ENEO is a major gas supply contract for VOG in terms of scale and profitability with guaranteed minimum take or pay gas consumption at a fixed US$9/mmbtu over the two year contract term. The contract can be extended by mutual agreement.