15th Sep 2006 07:00
Victoria Oil & Gas PLC15 September 2006 Victoria Oil & Gas Plc 15 September 2006 Well 103 Update for West Medvezhye Project, Russia • Well 103 at 3,627 metres and on schedule for completion to target depth of 3,885 metres by end of September • DeGolyer & MacNaughton increase best estimate gross prospective resource volume statement by 12% • Russian independent explorer Nadymneftegaz make new gas and condensate discovery in adjacent licence at well less than 10 kilometres from Well 103 Victoria Oil & Gas Plc ("the Company") the AIM-quoted oil and gas company focused on the Former Soviet Union, today announces that drilling at Well 103 at its West Medvezhye gas and condensate project (the "Project") has reached 3,627 metres and remains on track to reach target depth by the end of September 2006. The Company is targeting up to six potentially hydrocarbon-bearing intervals between depths of 3,200 - 3,880 metres. Last week, a well drilled by Russian independent explorer Nadymneftegaz to a depth below 3,000 metres less than 10 kilometres from Well 103 intersected potentially commercial quantities of gas and condensate. An updated resource statement for the Project prepared by independent reserve auditors DeGolyer & MacNaughton ("D&M") asat 30 June 2006 prior to this discovery gives an analysis of prospective intervals by well. D&M have also revised their best estimate gross prospective resource volume statement for the Project to 1.1 billion barrels of oil equivalent (an increase of 12%). The report is now available at Company's website at: www.victoriaoilandgas.com. Commenting today, Managing Director William Kelleher said, "We continue to see gas shows and have had to increase the density of the drilling fluid in order to maintain stable wellbore conditions. This should not delay us in reaching total depth by the end of this month. "The discovery made by Nadymneftegaz at our neighbouring field last week could be an extremely important indicator for our West Medvezhye licence as we believe that the well may be producing from intervals including those which Well 103 istargeting. Given the proximity of the discovery, it is a very encouraging sign. D&M's upgrading of their best estimate resource volume by 12% is also very good news" 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, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and 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 and gas exploration and production. Gross Prospective Resources - The total quantities of petroleum that are estimated, on a given 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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