Victoria Spuds Two West Medvezhye Wells

West Medvezhye - Russia
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Victoria Oil & Gas reports that drilling has commenced on two wells in its West Medvezhye gas and gas condensate project in Western Siberia.

The company said that drilling has commenced at Well 106, which is located approximately two kilometers east of discovery Well 104. It expects Well 106 to be completed to a depth of 1,350 meters next month. The well is designed primarily to delineate and confirm the subsurface accumulation of the Danniella Field. Its secondary purpose is to test the Cenomanian horizon--the main productive horizon of Gazpromís giant neighboring Medvezhye field.

Drilling operations have also begun at Victoria's new exploration well. Well 103 will be drilled to a depth of 3,850 meters to test a Jurassic horizon in an independent structure to the west of the Danniella Field. It should be completed in May 2006.

Victoria also reports that perforation and testing of Well 104 continues. The 1,100-meter horizon will be fracture-stimulated to clarify the well's production potential. Moreover, a twin well will be drilled alongside Well 104 to allow for the simultaneous fracture stimulation and well testing to increase the accuracy of the testing results. Given these refinements to the testing program, Victoria now expects full test results for Well 104 in May.

"To maximize the information gathered at West Medvezhye we have taken the decision to drill an additional well at 104 and to conduct extended testing within the existing wellbore," said William Kelleher, Victoria's managing director. "We expect to report detailed results from the Danniella Field in the coming months when we hope to further increase potential recoverable resources at the project."


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