VOG.L Regulatory News (VOG)

25 Jan 2006 07:01

Victoria Oil & Gas PLC25 January 2006 Victoria Oil & Gas Plc 25 January 2006 Updated Feasibility Study Issued for West Medvezhye Gas Project, Russia • DeGolyer & MacNaughton, independent reserve auditors, as part of an updated feasibility study on the West Medvezhye project in Western Siberia report prospective recoverable resource volumes of : • 5.5 trillion cubic feet of gas • 146 million barrels of gas condensate • 25 million barrels of oil • Total prospective recoverable hydrocarbon resource volume for the entire licence block of 1.1 billion barrels of oil equivalent* The Board of Victoria Oil & Gas Plc ("Victoria" or "the Company") the AIM-quotedoil and gas development company focused in the Former Soviet Union todayannounces that DeGolyer & MacNaughton ("D&M"), the independent reserve auditors,have issued an updated feasibility study on the Company's wholly-owned WestMedvezhye gas and gas condensate project in Western Siberia, Russia. This studyis a revision of that issued in December 2001. D&M reports best estimate prospective recoverable gas resource volume of 5.5trillion cubic feet for the entire West Medvezhye licence area. Also identifiedare prospective recoverable liquid hydrocarbon resource volumes of 146 millionbarrels of gas condensate and 25 million barrels of oil. The total combinedprospective recoverable hydrocarbon resource volume estimate for West Medvezhyeis 1.1 billion barrels of oil equivalent. These estimated prospectiverecoverable resources are dependent on successful discovery and development ofthe prospects evaluated. Please see the Company's website at www.victoriaoilandgas.com for a full copy ofthe feasibility study, which includes a scope of investigation, the source ofinformation and the classification of resources. Victoria is currently undertaking well testing at its discovery well, Well 104and drilling operations at two new wells, 106 and 103. Test results for Well 104are anticipated in the first quarter of this year. Mobilisation of drillingequipment is being completed at appraisal Well 106 and exploration Well 103 withdrilling to commence next month at both locations. Test results for these twowells are expected during the second quarter 2006. Commenting on the feasibility study today, Executive Director William Kellehersaid, "This is truly exciting news. D&M's conclusions independently confirm asignificant prospective recoverable resource volume of 5.5 trillion cubic feetof gas and 170 million barrels of recoverable liquids for the entire WestMedvezhye licence, including the Well 104 discovery (referred to as theDanniella accumulation). We are on target to obtain the well test results fromdiscovery Well 104 in Q1 and Wells 106 and Well 103 in Q2 2006." * A method of equating oil, gas and natural gas liquids. Gas is converted to oilbased on its relative energy content at the rate of six thousand cubic feet ofgas to one barrel of oil. 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 8220Leesa Peters/ Laurence ReadConduit PR+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