VOG.L Regulatory News (VOG)

2 Apr 2007 07:04

Victoria Oil & Gas PLC02 April 2007 Victoria Oil & Gas Plc 2 April 2007 Commencement of drilling at Kemerkol Oil Project, Kazakhstan • Drilling begun at Well 73, first of six new wells at Kemerkol oil project• Work-over to commence soon at producing Well 20 to increase oil yield• Mid-year production target of 500 barrels per day of oil Victoria Oil & Gas Plc ("Victoria" or "the Company")(ticker: VOG) the oil andgas development company focused in the Former Soviet Union announces today thatdrilling has commenced at the first well of its 2007 development programme atits Kemerkol oil project in Kazakhstan. Well 73 will be drilled to a depth of 1,350 metres updip of Well 20, which hasbeen producing oil since March 2006. Well 73 will be constructed in two stageswith a static rig used for drilling and a truck-mounted work-over rig to bemoved in for completion and testing. This operation is expected to take aroundtwo months. During completion of this well, the static rig will be relocated tothe next target location. Well 73 is the first of a six well drilling campaign at Kemerkol to beundertaken by Victoria during 2007 using this dual rig approach to maximiseefficiency. The Company believes that a target oil production level of 500barrels per day is attainable by mid-year. Meanwhile, Well 20 has been temporarily shut in pending a work-over to increaseoil production from this well. The work-over is expected to commence in Apriland will take around three weeks to complete. Commenting today, Victoria's Chief Executive Officer Tony Porter said, "Thespud-in of Well 73 signals the start of our strategy for boosting cashgeneration from production at Kemerkol. If the drilling of 73 and the work-overof Well 20 are successful, we could have in excess of 300 barrels of oil flowingper day to begin with." Kevin Foo / George Donne Laurence Read/Ed PortmanVictoria Oil & Gas Plc Conduit PR+44 (0)207 921 8820 +44 (0)207 429 6605 +44 (0)7979 955 923 Toby Hayward/Jack PrydeJefferies 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