UPDATE 1-Victoria Oil gets funding for Cameroon project

* Says Cameroon Holdings to give $4 mln-$10 mln funds

* Cameroon to give drilling rig, crew at discounted rate

* Shares rise as much as 8.6 percent (Adds details)

July 9 (Reuters) - Victoria Oil & Gas Plc (VOG.L) said it would get funding, drilling and local advisory services for its Logbaba gas field in Douala, Cameroon, from privately held Cameroon Holdings Ltd, sending its shares up 8.6 percent. Cameroon Holdings will provide $4 million to $10 million in cash, a drilling rig and drilling crew at a discounted operating rate and will also drill the first two wells at Logbaba, the AIM-listed oil and gas explorer said.

In return, Cameroon Holdings will get an average royalty payment of about 7 percent of gross revenue over the life of the project, the UK-based company with assets in Africa and former Soviet Union said.

The Logbaba project, with proven and probable reserves of 104 billion cubic feet of natural gas, is expected to provide positive cash flow in 2010, Victoria Oil said in a statement.

Cameroon Holdings' shareholders include HJ Resources Ltd, a company owned by a discretionary trust connected to Victoria Oil Chief Executive Kevin Foo, it said. Victoria Oil shares were up 5.2 percent at 3.67 pence at 0837 GMT. They touched a market high of 3.79 pence earlier in the session. (Reporting by Kumar Alagappan in Bangalore; Editing by Gopakumar Warrier)