StockMarketWire.com - Victoria Oil & Gas announced an 11.9% increase in gross average gas production from Logbaba to 14.59mmscf/d (Q2 2016: 13.04mmscf/d) in the three months to 30 June 2017.

PRODUCTION HIGHLIGHTS - Gross Logbaba gas sales increased to 1,192mmscf for the quarter (Q2 2016: 1,151mmscf)

DRILLING NEW WELLS

- Completion, flow testing and network supply input at well La-107 is scheduled for Q3 2017

- Well La-107, as of 30 July 2017, has been drilled to 2914m Measured Depth (MD), and 2901m Total Vertical Depth (TVD) and a 7" liner has been run to 2,440m (2,426m TVD) and cemented in place

- Well La-107 has, to date, encountered a net pay of 35m of high permeability, high porosity gas bearing sands in the Upper Logbaba Formation, slightly more than was expected, based on the La-104 logs. Preliminary results indicate that a further 15m of net gas sand has been encountered in La-107 in the Lower Logbaba Formation

- Engineering design work has been completed to allow La-108 to be side-tracked, through the Logbaba Formation, to access the 100m of gas sands found in the original La-108 wellbore. Drilling will commence after the completion of La-107

FINANCIAL HIGHLIGHTS

Q2 (unaudited) financial highlights:

- $7.8 million net revenue (Q1 2017: $8.1 million)

- $7.6 million cash position at quarter end (Q1 2017: $10.5 million)

- $20.7 million net debt position at quarter end (Q1 2017: $10.7 million)

- 5% Cameroonian State participation in Logbaba; 3% relinquished by Gaz du Cameroun SA (GDC)




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