5th Aug 2005 07:00
Victoria Oil & Gas PLC05 August 2005 Victoria Oil & Gas plc 5 August 2005 Tamdykol Licence Extension Granted • Tamdykol oil project granted two year licence extension by Kazakh Government • Drilling anticipated to begin in late August • Potential C3/D1 resource estimates of 34 million barrels of oil The Board of Directors of Victoria Oil & Gas Plc ("Victoria"), the AIM-quotedoil and gas company (ticker:VOG), today announces the granting of a two yearextension to the exploration licence of its 90% owned Tamdykol oil project innorth-west Kazakhstan. The Ministry of Energy and Mineral Resources of the Republic of Kazakhstanawarded the extension to Victoria's subsidiary Olager Oil LLP. The licenceexploration period will now be extended until May 2007. In the event of acommercial discovery, the licence will be extended for a production period of afurther 19 years. Victoria and NEK Services LLP ("NEK") are now able to begin preparations for thedrilling operations in the Tamdykol oil project, as per the farm-out agreementsigned in May 2005. Under the terms of the agreement, NEK will finance andperform the US$1.25 million minimum work programme over the next two years,including the processing and reinterpretation of seismic and other geologicaldata, drilling of four exploratory wells to target depth of 500 metres andconstruction of key facilities to support development. Drilling of the first test well at Tamdykol is expected to begin in late August,following the obtaining of all necessary permits. Drilling of a second well andthe geological data collection is then anticipated in late September. Tamdykol, a five square kilometre licence area in the post salt-depth region ofthe Emba oil and gas province of the Pre-Caspian basin, was acquired by Victoriafrom Celtic Resources Holdings Plc in August 2004. Prospect drilling on theSagiz Block of Emba, to which Tamdykol belongs, has so far yielded several oiland gas discoveries. Potential recoverable C3/D1 resources are estimated atapproximately 34 million barrels of oil beneath a sub-salt overhang. Kevin Foo / George Donne Jamie Cumming / Tracy MackenzieVictoria Oil & Gas Plc Bell Lawrie+44 (0)207 921 8820 +44 (0)141 314 [email protected] +44 (0)141 314 8220 Leesa Peters/ Laurence ReadConduit PR+44 (0)207 618 8760+44 (0)7979 955 923 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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