VOG.L Regulatory News (VOG)

15 Jan 2007 07:01

Victoria Oil & Gas PLC15 January 2007 Victoria Oil & Gas Plc 15 January 2007 Preliminary Test Results for Well 103, West Medvezhye Gas and Condensate Project, Russia • Initial flow rates of 350 barrels per day of condensate and associated natural gas• Well 103 to continue on test for a period of 90 - 120 days• Mobilisation of Well 105 begun and drilling to commence in second quarter of 2007 Victoria Oil & Gas Plc ("the Company")(AIM:VOG), the AIM-quoted oil and gascompany focused on the Former Soviet Union, today announces preliminary testresults of Well 103, at its West Medvezhye gas and condensate project in Russia. Well 103 was successfully perforated in the J2 Jurassic horizon at intervalsbetween 3,794 - 3,799 metres and produced back on test at an average daily rateof 350 barrels per day condensate along with associated gas at 1500 psi flowingtubing pressure on a 12/64" choke with traces of water. Gas condensate is a veryhigh quality form of oil found in the presence of natural gas, the market priceof which has historically exceeded that of local Urals blend crude oil. The well test will continue for a period of 90 - 120 days, during which time thedaily production rates along with other data will be measured and recorded forfurther analysis to determine the reservoir characteristics and overallproductivity of the well. At the end of the testing period the results will besubmitted to independent reserve auditors DeGolyer & MacNaughton for furtherreview and evaluation. Construction of the ice roads to the next exploration well, Well 105, has beencompleted and the drilling rig mobilisation has begun. Well 105 is to commencedrilling in the second quarter of 2007. Commenting today on the preliminary well test results, Managing Director WilliamKelleher said, "We are very excited about the initial well testing response fromWell 103. Although we are still in the preliminary stages, we are encouragedwith what we see. We will now allow the well to continue producing for theremainder of the testing period, during which time we will closely monitor theresults while we continue the drilling rig mobilisation to our next location atWell 105." Kevin Foo / George Donne Leesa Peters/ Laurence ReadVictoria Oil & Gas Plc Conduit PR+44 (0)207 921 8820 +44 (0)207 429 6605 +44 (0)7979 955 923 The information in this release has been reviewed by William Kelleher, SPE, whois a qualified person for the purposes of the AIM Guidance Note for Mining, Oiland Gas Companies. Mr. Kelleher is Managing Director of Victoria Oil & Gas Plc,is qualified as a petroleum engineer and has over 26 years experience in oil andgas exploration and production. This information is provided by RNS The company news service from the London Stock Exchange