10th Sep 2007 07:02
Victoria Oil & Gas PLC10 September 2007 Aim Release10 September 2007 Victoria Oil & Gas Plc Drilling Update at Kemerkol Oil Project, Kazakhstan Victoria Oil & Gas Plc ("Victoria" or "the Company"), (AIM:VOG), the oil and gascompany focused on the Former Soviet Union, today announces that it hascompleted drilling of exploration Well 70 and has recommenced production fromWell 20 at its wholly-owned Kemerkol oil project in the Atyrau Oblast ofKazakhstan. Well 70 was drilled to a total depth of 763 metres to explore the south of thelicense block close to a major east-west trending fault, up-dip of the welllocation. The logging results indicated all potential reservoir sands in theJurassic and in the deeper Triassic to be water bearing and not hydrocarbonproductive. The conversion of Well 45 into a water re-injection well has been completed andWell 20 has been brought back into economic production. Using a progressivecavity pump, this well is currently producing approximately 140 barrels per dayof fluid, of which 25 barrels per day is oil. With the installation of a largerpump the Company reasonably believes that it can at least double oil productionfrom this well. Having reprocessed the 3D seismic results using the physical data gathered fromthe exploration and development drilling undertaken, the Company has re-confirmed that the next exploration drilling location, Well 66, will be in theeastern area of the license block at the top of an anticline structure. Tony Porter, CEO of Victoria Oil & Gas, said today, "So far our explorationactivities have centred on finding potentially hydrocarbon-bearing locationssealed by fault lines running through the block. Well 66 is a different playconcept targeting an anticline rather than a fault and should be spudded in amatter of days." Porter added, "The completion of operations at Well 45 and 20 is positive newsand we will now look to maximise production from this location. Well 20 isproducing at a limited rate at present, but with more efficient extractionthrough a larger pump on this well plus our existing test production at well 73,we should see a significant increase in oil yield". Kevin Foo / George Donne Jonathan Charles / Ed PortmanVictoria Oil & Gas Plc Conduit PR+44 (0)207 921 8820 +44 (0)207 429 6666 +44 (0) 7733 363 501Toby Hayward / Oliver GriffithsJefferies 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 ExchangeRelated Shares:
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