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Rodeo Development Limited - Gas Delivery - Cameroon

Victoria Oil & Gas is pleased to announce that Rodeo Development Limited (“RDL”), the Company’s subsidiary has completed the connection and delivery of gas to the Koumassi plant of Societe Anonyme des Brasseries du Cameroun (“SABC”). This addition of approximately 0.5mmscf/d increases RDL’s production from 2.4mmscf/d to 2.9mmscf/d and brings the total number of customer sites with completed thermal conversion to twenty.

Koumassi, the largest of SABC’s sites in Cameroon, is the second SABC plant to receive natural gas from RDL. SABC, a subsidiary of Groupe Castel and the largest brewing company in Cameroon with 82% market share and $640 million in sales, is scheduled to convert a second boiler at the Koumassi site to gas by the end of the year.

In addition another Groupe Castel subsidiary, Societe Camerounaise de Verre (SOCAVER), a glassmaker and bottle manufacturer, has ordered the burners and boiler parts required to refurbish and convert its furnaces to natural gas by the end of the year. SOCAVER has an estimated gas consumption of 0.4mmscf/d.

Sylvain Gaudet, the technical director of SABC, said: “The conversion from Heavy Fuel Oil to natural gas significantly reduces our fuel, logistics and maintenance costs as well as the impact of our processes on the environment.”

Kevin Foo, VOG Chairman, said: “This repeat business by SABC, the largest brewer in Cameroon increases our production by approximately 20% to 2.9mmscf/d. I believe that this is a strong endorsement of the work being carried out by our production and marketing teams in Cameroon.”

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