Victoria Oil & Gas Plc, the U.K.- based explorer that plans to produce its first onshore gas in the first quarter, said it has “plenty of cash” to complete the project.
The company needs additional funding of $10 million to complete the Logbaba field after increasing its stake to 95 percent, Chairman Kevin Foo told reporters today in London.
Victoria Oil raised its holding from 57 percent after RSM Production Corp., its partner in Cameroon, failed to fund its share, the London-based company said today in a statement.
“We have plenty of cash to complete the job,” Foo said. Victoria Oil will get “roughly a quarter of a billion” dollars in value from taking over RSM’s share.
Victoria Oil plans to supply about 8 million cubic feet a day of gas next year to customers including the local units of Nestle SA, SABMiller Plc and Diageo Plc amongst others.
The company expects to increase output to 44 million cubic feet a day in 2014 and to as much as 200 million a day in 2018, depending on further field exploration and local demand.
The company isn’t interested in providing supplies for the GDF Suez SA-led liquefied natural-gas project in Cameroon, Foo said.