VOG.L Regulatory News (VOG)

16 Nov 2005 07:22

Victoria Oil & Gas PLC16 November 2005 Half a Trillion Cubic Feet Gas Resource Discovery Confirmed by DeGolyer & MacNaughton at West Medvezhye, Russia • Half a trillion cubic feet ("Tcf") recoverable gas resource confirmed by independent consultants DeGoyler & MacNaughton ("D&M") from first discovery well • D&M predict a maximum upside estimate of 2.3 Tcf, a 130 fold increase from 16.6 billion cubic feet reported by the Company in August 2005 • Three further exploration wells to be drilled by mid 2006 to explore additional gas potential and to upgrade resources into reserves The Board of Victoria Oil & Gas Plc ("Victoria" or "the Company")(tic:VOG), theAIM-quoted oil and gas company, announces that resources of half a trillioncubic feet of recoverable gas have been confirmed by independent specialists D&Mfrom discovery Well 104 at the Company's West Medvezhye gas and condensateproject. The project is located in the Yamal Nenetsk Region of Russia, a regionwhich contributes around 20% of global gas production annually. D&M is an international oil and gas reservoir auditor and the chief reserveauditor for many major Russian producers including Gazprom and Novatek. Usingdata obtained just from Well 104 at West Medvezhye a resource range has beenestablished by D&M that estimates a maximum amount of 2.3 trillion cubic feet ofrecoverable gas resources present. This is over 130 times the previous maximumestimate released by D&M in August 2005 of 16.6 billion cubic feet. Recoverable ResourcesThe D&M volume range of recoverable resources below is based on an independentinterpretation of the data gathered from Well 104 in August 2005 that recordedtwo productive gas intervals at depths of 610 and 1,100 metres: Low Expected High ----- ---------- ------Recoverable gas 92.3 Bcf 500.8 Bcf 2.3 TcfAttributable recoverable gas resources per 0.8 Mcf 4.6 Mcf 20.7 Mcfshare Mcf: Thousand cubic feetBcf: Billion cubic feetTcf: Trillion cubic feet Attributable gas resources per share based on Victoria's 74.8% of the projectand its current number of shares outstanding of 81.9 million Commenting on the results today, Executive Director William Kelleher said;"Today Victoria has had a recoverable gas resource of half a trillion cubic feetindependently confirmed at our premier asset, located in Russia. This resourcepotential is based on just one discovery well. In 2006 Victoria will proceedwith the drilling of three additional wells at West Medvezhye. Successful testsof these wells will enable us to reclassify current resource volumes intoreserves and to explore further the resource potential of this significantproject in one of the world's premier regions for gas and gas condensateproduction". Kevin Foo, Chairman, said, "Half a Tcf from our first well and more to come.This discovery could underpin our transformation into a mid-cap company." Reclassification of the above mentioned resources into reserves is conditionalon a successful well test of the existing Well 104 and the drilling, completionand successful testing of additional wells. For further information, please contact: Kevin Foo / George Donne Jamie Cumming / Tracy MackenzieVictoria Oil & Gas Plc Bell Lawrie+44 (0)207 921 8820 +44 (0)141 314 8103 +44 (0)141 314 8220Laurence ReadConduit PRDirect: +44 (0) 20 7618 8707Mob: +44 (0) 7979 955 923 Further information on DeGolyer & MacNaughton can be obtained at www.demac.com This information is provided by RNS The company news service from the London Stock Exchange