VOG.L Regulatory News (VOG)

12 Oct 2006 07:01

Victoria Oil & Gas PLC12 October 2006 Victoria Oil & Gas Plc 12 October 2006 Well 103 Results Confirm Hydrocarbon Presence at West Medvezhye Project, Russia • Three hydrocarbon-bearing intervals totalling over 55 feet of net pay sands confirmed by petrophysical interpretation of open-hole logs• Intervals located in or around the Bazhenov shale, the source rock for some of the largest gas and condensate accumulations in the world• Well to be put on test for 90 - 120 days to determine accumulation characteristics and size Victoria Oil & Gas Plc ("Victoria" or the "Company")(ticker: VOG), the AIM-quoted oil and gas company focused on the Former Soviet Union, today announcesresults of petrophysical interpretation based on the open-hole logging at Well103 at its West Medvezhye gas and condensate project in Russia. The well was drilled to a total depth of 3,900 meters and open-hole logs wereobtained with petrophysical interpretations generated by the Company's technicalteam, Baker Atlas and Krasnoyarskgeophysika. The log data obtained from the wellbore and subsequent interpretation hasyielded the following results: • Interval 3,730 - 3,737 metres: hydrocarbon-bearing sands were observed in the Bazhenov horizon with hydrocarbon saturation of 50% and porosity of 11%. • Interval 3,794 - 3,799 metres: hydrocarbon-bearing sands were observed in the Jurassic (J2) horizon with hydrocarbon saturation of 75% and porosity of 15%. • Interval 3,812 - 3,817 metres: hydrocarbon-bearing sands were observed in the J2 horizon with hydrocarbon saturation of 75% and porosity of 17%. The logs give a strong indication of the presence of gas or gas condensate,however, the Company cannot rule out the possibility of independent oilaccumulations as several wells in nearby licence areas have produced crude oilfrom the J2 horizon. The horizons indicating hydrocarbon shows are either withinor close to the Bazhenov shale. This is the source rock for the Nadym-Purhydrocarbon province, which hosts some of the largest gas and gas condensatefields in the world. On the basis of these results, casing will be set to a depth of 3,880 metres andmobilisation will begin for testing to determine reservoir productivity,characteristics and reserve volume size. This testing will take place for aminimum period of 90 to 120 days and the Company anticipates commencement beforethe end of the year. The Company will also be using the subsurface data gathered from this well torefine its interpretation of its existing seismic data. This will remove some ofthe uncertainty inherent in the identification and selection of the targets forthe further exploration of the licence area. Commenting today, Managing Director William Kelleher said, "Today's results areextremely important for Victoria as they confirm the presence of hydrocarbons atWell 103 in over 55 feet of net pay sands. These same intervals produce fromadjacent wells in nearby licence areas and the subsurface data we have obtainedwill greatly enhance our analysis of the new exploration targets to be drilledthis winter. Presently the well is stable, in good condition and will be casedprior to extensive testing to confirm the nature and overall size of eachaccumulation as well as potential productivity." For further information please contact: 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