VOG.L Regulatory News (VOG)

3 Sep 2007 07:02

Victoria Oil & Gas PLC03 September 2007 Victoria Oil & Gas Plc 3 September 2007 Operation Update on West Medvezhye Project, Russia Victoria Oil & Gas Plc ("Victoria" or "the Company") (AIM:VOG), the AIM-quotedoil and gas company focused on the Former Soviet Union, today announces anoperational update on the testing of Well 103 at its wholly-owned West Medvezhyegas and condensate project in Western Siberia, Russia. Well 103 is located in the central part of the 1,224 square kilometre licencearea and is one of 26 prospects identified by independent reserve auditors. InJanuary 2007, the well was perforated and flowed at a rate of approximately 350barrels per day of light oil. Natural flow was impaired by residual completionfluid, which adversely affected results obtained during testing. After extensive operations a total of 25 cubic metres of fluid was recoveredleaving approximately 20 cubic metres still remaining. A Pressure Build-Up (PBU)test was then carried out over 15 days. The maximum registered pressure was 564bar indicating that the reservoir is significantly over-pressured. In order to displace the remaining completion fluid, the Company now plans tocirculate condensate into the wellbore. Regular flow is then expected to beestablished, another PBU survey carried out and a bottom-hole sample taken, toderive reliable reservoir parameters. These procedures should be completed inthe fourth quarter of this year. The data provided from these tests will be analysed and submitted to theMinistry of Natural Resources together with the calculation of recoverablereserve volumes for the structure around Well 103. On approval of the data andcalculations, any recoverable reserves will be entered into the official recordof Russian State Reserves. Tony Porter, Chief Executive Officer of Victoria, said today, "Well 103 is thefirst exploration well to be drilled to this depth on the block. The testsconducted so far confirm the presence of hydrocarbons and significant reservoirpressure in the target horizon, but the key parameter of permeability has notyet been fully determined." Porter added, "We have solved many significant technical and logistical problemsin designing the further tests and anticipate that the condensate flush and PBUsurvey will give us the data we require for completing the evaluation of thewell, allowing us to submit our reserves calculations to the Ministry." Kevin Foo / George Donne Jonathan Charles / Ed PortmanVictoria Oil & Gas Plc Conduit PR+44 (0)207 921 8820 +44 (0)207 429 6666 +44 (0) 7733 363 501Toby Hayward / Oliver GriffithsJefferies International+44 (0)207 618 3500 The information in this release has been reviewed by Gerd Fabel, SPE, who is aqualified person for the purposes of the AIM Guidance Note for Mining, Oil andGas Companies. Mr. Fabel is Head of Exploration at Victoria Oil & Gas Plc andis qualified as a petroleum engineer with over 25 years experience in oil andgas exploration and production. This information is provided by RNS The company news service from the London Stock Exchange