VOG.L Regulatory News (VOG)

5 Aug 2005 07:00

Victoria Oil & Gas PLC05 August 2005 Victoria Oil & Gas plc 5 August 2005 Update on Acquisition of 15.2% of West Medvezhye Project Victoria Oil & Gas Plc ("Victoria") (ticker: VOG) today announces that itsacquisition of a further 15.2% interest in ZAO Sever Gas-Invest ("SGI"), theowner of the West Medvezhye licence, has been delayed. Victoria has discovered during the course of its legal due diligence on thistransaction that there is a problem with the vendors' title to the remainingshares in SGI and therefore has halted the transaction whilst this matter isbeing resolved. This issue does not affect in any way the 74.8% of SGI, whichhas already been acquired by Victoria. No consideration shares will be issued,nor will any waiver of Victoria's claim of $2.6 million against the vendors begiven until all matters are resolved to the Board's satisfaction. Chairman Kevin Foo said today "It is disappointing that this delay has occurred,but our long experience in the FSU has taught us to be very thorough with thedue diligence process. We will be working to find a swift resolution to thisissue and I can assure shareholders that this in no way affects our existingownership or management of the West Medvezhye project." Victoria is currently drilling a Geoprobe on Well #104 at West Medvezhye andtarget depth has been reached and well logging and testing is underway and willbe completed in late August. A progress report will be issued then. For further information please contact: Kevin Foo / George Donne Jamie Cumming / Tracy MackenzieVictoria Oil & Gas Plc Bell Lawrie+44 (0)207 921 8820 +44 (0)141 314 8103 +44 (0)141 314 8220 Leesa Peters/ Laurence ReadConduit PR+44 (0)207 618 8760+44 (0)7979 955 923 This information is provided by RNS The company news service from the London Stock Exchange