Bramlin, the independent oil and gas company focusing on exploration and production in Cameroon, is pleased to announce today that its wholly owned subsidiary, Rodeo Development Ltd., the operator of the Logbaba natural gas field near Douala, Cameroon, has executed three agreements to sell natural gas to industrial customers in the Douala area. The terms of these agreements, although confidential, are in line with the economic assumptions presented in the Company's re-admission document dated 22nd November 2007.
As part of the planning for the commercialization of the Logbaba field, a gas market report was commissioned which identified the potential demand for natural gas and stated that approximately 16 million cubic feet per day could be sold to industrial energy users in the Duala area. First deliveries of natural gas to industrial customers are expected to occur in late 2009 and the Company is in negotiations with additional potential industrial customers in the Douala area with a view to capturing a significant percentage of this identified potential demand by the time of first gas.
The first phase of development has a planned requirement of two producing wells, which will be twins of the original wells drilled in the mid 1950s when the Logbaba natural gas field was discovered by Elf SEREPCA. Despite several positive well tests for natural gas the field was never put on production due to there being no market for the gas at that time. Bramlin intends to develop the field in order to provide local industrial customers with low cost natural gas and further development in the future could involve the supply of natural gas for power generation, which is currently being considered by the Cameroon government. The high Btu content of the natural gas stream also justifies Natural Gas Liquid extraction with the liquids being sold into the local or export market.
Jim Ford, CEO of Bramlin, said, "This is an important first step in the commercialization of the Company's proven natural gas reserves. The availability of clean and inexpensive natural gas for the industries of Cameroon will help those industrial users compete in the West African market place and will be a catalyst for future growth and employment."
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