VOG.L Regulatory News (VOG)

27 Mar 2006 12:24

Victoria Oil & Gas PLC27 March 2006 Victoria Oil & Gas Plc 27 March 2006 Development Update on West Medvezhye Project, Russia • Fracture stimulation of Well 104 and drilling of a twin well to optimise on-going testing with results expected May 2006 • Drilling commenced on appraisal Well 106 with completion expected April 2006 • Drilling commenced on new exploration well, Well 103, with completion expected in May 2006 The Board of Victoria Oil & Gas Plc ("Victoria" or "the Company"), the oil andgas company operating in the Former Soviet Union; today announces an update ondevelopment of its West Medvezhye gas and gas condensate project in WesternSiberia, Russia. Perforation and testing of Well 104 continues and it has been decided tofracture stimulate the 1,100 metre horizon to clarify its production potential.It has also been decided to drill a twin well alongside Well 104 to allow forthe simultaneous fracture stimulation and well testing to increase the accuracyof the testing results. Due to of these refinements to the testing programme full test results for Well104 are now expected in May 2006. Drilling at Well 106, located about two kilometres east of discovery Well 104,has commenced and is expected to be completed to a depth of 1,350 metres inApril 2006. This well is designed firstly to delineate and confirm thesubsurface accumulation of the Danniella Field and secondly to test theCenomanian horizon, which is the main productive horizon of Gazprom's giantneighbouring Medvezhye field. Drilling operations also commenced at the Company's new exploration well, Well103, on 22 March. Well 103 will be drilled to a depth of 3,850 metres to test aJurassic horizon in an independent structure to the west of the Danniella Field.Well 103 is expected to be completed in May 2006. Commenting today William Kelleher, Managing Director, said, "To maximise theinformation gathered at West Medvezhye we have taken the decision to drill anadditional well at 104 and to conduct extended testing within the existingwellbore. We expect to report detailed results from the Danniella Field in thecoming months when we hope to further increase potential recoverable resourcesat the project." 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 8220Leesa Peters/ Laurence ReadConduit PR+44 (0)207 429 6605+44 (0)7979 955 923 This information is provided by RNS The company news service from the London Stock Exchange