1st Jul 2008 07:00
1 July 2008
Victoria Oil & Gas Plc
Update on Projects in Russia and Kazakhstan
The Board of Victoria Oil & Gas Plc ("Victoria" or "the Company")(AIM:VOG), the AIM-quoted oil and gas exploration company focused on the Former Soviet Union, today announces an update concerning its West Medvezhye ("West Med") gas and gas condensate field in Western Siberia, Russia and Kemerkol oil project in the Atyrau Oblast of Kazakhstan.
West Medvezhye
The Company has received a certificate from the Russian Ministry of Natural Resources confirming registration of a discovery at the West Med field for Well 103. This certificate completes the requirements for conversion of the West Med exploration licence into its 20 year production phase.
Exploration around the location of the next target, Well 105, is continuing with a reinterpretation of the existing seismic and the new data obtained from the drilling of Well 103 being undertaken by local geological institute SibNats. A geochemical survey has also been completed to evaluate further potential target areas around the location of Well 103. This new exploratory data will be combined with a Geospectra IPDS passive seismic survey to be attempted by GeoDynamics Research when the conditions allow.
Commenting today, Chairman Kevin Foo said, "This official certification confirms the recognition of Victoria's successful fulfilment of its exploration licence obligations for West Med by the Russian authorities. The initial work by the local geological institute has revealed some intriguing new potential close to Well 103 and so we look forward to GeoDynamics' further appraisal."
Kemerkol
Victoria's Kazakh subsidiary, Victoria Energy Central Asia LLP ("VECA"), has temporarily suspended production from Kemerkol pending resolution of the legal claim against VECA, which was reported in the Company's announcement on 25 April 2008.
An initial hearing at the local economic court upheld the claim against VECA. The Company and its Kazakh legal advisors believe that this decision contravened several precepts of Kazakh legal and procedural practice. The appeal courts in the Atyrau Oblast have declined to revisit the claim against VECA and the appeal will therefore now be taken to the Supreme Court of the Republic of Kazakhstan.
Victoria has also sent petitions to the General Prosecutor for the Republic of Kazakhstan and to the Presidential Anti-Raider and Anti-Corruption Executive Committees to investigate what the Company believes to be a fabricated attempt to undermine VECA's rightful title to the Kemerkol licence. Victoria has been notified by the Office of the General Prosecutor that, under instruction from the President of Kazakhstan, an investigation has been launched into the details of the case.
The Board of Victoria would like to stress to shareholders that the claim against VECA is, in the opinion of the Company and its Kazakh legal advisors, without any justification. A vigorous defence of VECA's rights is being conducted with the full knowledge of the regulatory authorities and the illegal nature of this attack has been highlighted.
The Board is also aggressively pursuing options for counterclaims against the perpetrators in jurisdictions outside Kazakhstan, but maintains every confidence that Kazakhstan's justice system will prevail. The Directors believe that this attack blatantly contravenes the Rule of Law in Kazakhstan and if this type of raid is allowed to succeed it undermines the country's entire investment climate.
For further information, please contact:
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Kevin Foo / George Donne Victoria Oil & Gas Plc +44 (0)207 921 8820 |
Jonathan Charles / Ed Portman Conduit PR +44 (0)207 429 6607 +44 (0)7733 363 501 |
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Simon Raggett / Braden Saunders Strand Partners Limited +44 (0)20 7409 3494 |
Jack Pryde / Oliver Griffiths Jefferies International +44 (0)207 029 8000 |
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