22nd May 2007 09:26
Victoria Oil & Gas PLC22 May 2007 Victoria Oil & Gas Plc 22 May 2007 Update on Testing of Well 103 at West Medvezhye Project, Russia Victoria Oil & Gas Plc ("Victoria" or the "Company")(AIM:VOG), the oil and gascompany focused on the Former Soviet Union, today announces progress on thetesting of Well 103 at its West Medvezhye gas and condensate project in Russia. Well 103 was successfully perforated in the J2 Jurassic horizon between 3,794 -3,799 metres in early January with an initial flow rate of 350 barrels per dayof condensate and light oil. The well continued to produce condensate and light oil for the duration of thetest at a daily rate of approximately 350 barrels. The well, however, alsoproduced water, which was determined to be completion fluid unsatisfactorilyswabbed from the well-bore by the testing contractors. The Company believes thatthe hydrocarbon flow rates from the test may have been negatively affected bythis water and so will conduct a second, accelerated well test to confirmresults. The accelerated test is expected to commence in the next two weeks conditionsallowing and will take approximately 6 - 8 weeks, after which time the data willbe analysed to provide a meaningful assessment of the reservoir characteristics.The data will also be submitted to independent reserve auditors DeGolyer andMacNaughton for integration into their resource volume calculation for thefield. Tony Porter, CEO of Victoria Oil & Gas, said today, "The well has so far beenproducing at a rate of around 350 barrels per day, but we believe that this maynot be indicative of the potential hydrocarbon flow. This test is very importantfor the future exploration of the asset and achieving the best quality resultspossible is vital, even if this lengthens our testing period. An early thaw ofthe permafrost has frustrated our efforts to commence the test sooner, but weanticipate that the new test will prove more productive." For further information please contact: Kevin Foo / George Donne Ed Portman / Charlie GellerVictoria Oil & Gas Plc Conduit PR+44 (0)207 921 8820 +44 (0)207 429 6666 +44 (0)7970 067 320Toby Hayward/Jack PrydeJefferies 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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