VOG.L Regulatory News (VOG)

4 Dec 2006 07:01

Victoria Oil & Gas PLC04 December 2006 Victoria Oil & Gas Plc 4 December 2006 Commencement of Mobilisation for Well 105 • Mobilisation of equipment begun for new exploration well at West Medvezhye gas and condensate project, Russia• The new well, Well 105, given gross prospective resources of 130 million barrels of oil equivalent by DeGolyer & MacNaughton with significant probability of geologic success• Drilling operations to commence in second quarter to planned depth of approximately 3,850 metres Victoria Oil & Gas Plc ("the Company")(AIM:VOG), the AIM-quoted oil and gascompany focused on the Former Soviet Union, today announces the commencement ofmobilisation for drilling of its new exploration well, Well 105, at its WestMedvezhye gas and condensate project in Russia ("the Project"). Well 105 will explore a 15 square kilometre prospect, for which independentreserve auditors DeGolyer & MacNaughton ("D&M") have calculated a total grossprospective resource volume of 130 million barrels of oil equivalent. D&M haveassigned to this location the highest potential success factor of those assessedin their report on the Project dated 30 June 2006. The prospect is a "4-way closure" with subsurface data and 2D seismic suggestingthat this location covers both structural and stratigraphic accumulations. The principal target horizons are sandstone reservoirs at depth intervalsbetween 2,760 and 3,780 metres. Total planned depth for the well isapproximately 3,850 metres. The Company has begun construction of an ice road from the site of its currentoperations at Well 103 to Well 105, approximately 22 kilometres to thenorthwest. Once the road is finished, the drilling rig will be moved from Well103 to the new site at 105. All necessary equipment is expected to have been mobilised and rigged by the endof the first quarter of 2007 and drilling is expected to commence in the secondquarter. Commenting today, Managing Director William Kelleher said: "As identified by independent reserve auditors D&M, Well 105 is West Medvezhye'smost promising prospect for the discovery of gas and condensate. Favourableweather conditions have allowed us to begin mobilisation ahead of schedule andwe aim to commence drilling operations in the second quarter of 2007. Allexploration carries a degree of risk, but D&M has assigned each of the sevenprospective horizons at this well site a significant probability of success.This gives us great confidence in our interpretation and geologic prognosis." 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