29th Jun 2006 07:55
Victoria Oil & Gas PLC29 June 2006 Victoria Oil & Gas Plc 29 June 2006 Update at West Medvezhye Project, Russia • One billion barrels of oil equivalent confirmed - updated gross resource volume statement from independent auditors DeGolyer & MacNaughton• Exploration and testing at Danniella suspended - non-commercial test responses. Danniella contributed less than 10% of previous D&M total resource volume• Further exploration underway at new targets - Well 103 at 1,653 metres and Well 105 to commence before year-end Victoria Oil & Gas Plc ("Victoria" or "the Company") the AIM-quoted oil and gasdeveloper focused on the Former Soviet Union, today announces that it hasreceived a preliminary revised resource statement from independent reserveauditors DeGolyer & MacNaughton ("D&M") for the whole of its 100% owned WestMedvezhye gas and condensate project (the "Project") in Russia. This statement confirms a new expected case gross prospective resource volumefor the Project of 1.0 billion barrels of oil equivalent consisting of 5.1trillion cubic feet of gas, 124.0 million barrels of condensate and 24.6 millionbarrels of oil. A copy of the D&M statement will be available on the Company's website atwww.victoriaoilandgas.com when finalised. The results of testing the 550 metre and 610 metre horizons at Wells 104, 104-Bis and 106 show that these horizons are non-commercial. Having discussed thiswith D&M, the Board has decided to refocus the allocation of its resources onthe exploration and further development of deeper horizons in the 1,440 squarekilometre (555 square mile) licence area, which are the productive horizons ofthe adjacent main Medvezhye field. The development of these horizons is underway with the drilling of Well 103,which has reached a depth of 1,653 metres. This well will test a new structure,for which D&M have estimated a gross prospective resource volume of 639 billioncubic feet of gas and 32 million barrels of condensate, (138.5 million barrelsof oil equivalent). The next target will be Well 105 located in the North-West corner of the licencearea, which has been labelled the North-West Closure. D&M have estimated grossprospective resource volumes of 559 billion cubic feet of gas and 20.2 millionbarrels of condensate at this location, (114.0 million barrels of oilequivalent) and work is expected to commence towards the end of this year. Commenting on the results, Managing Director William Kelleher said, "West Medstill has confirmed expected resources of one billion barrels of oil equivalentas the shallower horizons of Danniella contributed less than 10% to the previoustotal expected resources. "We are now entirely focused on the most prospective areas of the licence blockand we are currently pursuing exploration at the deeper targets in Wells 103 and105." 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 The information in this release has been reviewed by William Kelleher, SPE, whois a qualified person for the purposes of the AIM Guidance Note for Mining, Oiland Gas Companies. Mr. Kelleher is Managing Director of Victoria Oil & Gas Plc,is qualified as a petroleum engineer and has over 26 years experience in oil andgas exploration and production. Prospective Resources - Those quantities of petroleum that are estimated, on agiven date, to be potentially recoverable from undiscovered (undrilled)accumulations. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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