VOG.L Regulatory News (VOG)

13 Sep 2006 08:53

Victoria Oil & Gas PLC13 September 2006 Victoria Oil & Gas Plc 13 September 2006 Signing of Framework Agreement for Gas Off-Take for a new Power Station in Moscow, Russia • Victoria signs framework agreement for provision of gas to new 210 MW power station to be built in Moscow • Approximately 15 billion cubic feet to be provided per annum at market price for a minimum of two years when West Medvezhye is in commercial production • Power station to negotiate transmission of gas through pipeline network with Gazprom Victoria Oil & Gas Plc ("Victoria" or the "Company"), the AIM-quoted oil and gascompany, today announces that it has signed a framework agreement (the "Agreement") with OOO EnergoPromInvest ("EPI") for the potential provision of gasfrom its West Medvezhye licence in Russia to a new power station to beconstructed in Moscow (the "Power Station"). EPI holds the right for construction and operation of a new gas-turbine heat andpower station in the Scherbinka suburb in the south-west region of Moscow. ThePower Station will have the capacity to generate up to 210 MW of electricity and300 Gkal/h of heat and will require an estimated 15 billion cubic feet of gasper annum. The power station is expected to start limited operation in 2007 with fullelectric and heat capacity anticipated by the third quarter of 2009. Under theterms of the Agreement, Victoria will enter into a gas off-take contract withEPI to supply 100 per cent of the Power Station's gas requirement for a minimumof two years when West Medvezhye is in commercial production. The gas will beacquired at the prevailing market price. As an industrial consumer, EPI will have the right to buy gas from the field andGazprom shall be required to transport it to the power station, subject to thegas meeting designated technical standards and available pipeline capacity. Commenting today William Kelleher Managing Director said, "In signing thisagreement we have secured a future market for our prospective gas production andaccess to Gazprom's pipeline system. The construction of the Scherbinka powerstation will dovetail with the development of our West Medvezhye asset and weare proud to be involved with such an important project for the city of Moscow". 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 This information is provided by RNS The company news service from the London Stock Exchange