Victoria Begins Drilling at Tamdykol Oil Project in Kazakhstan

Victoria Oil & Gas has commenced operations at its 90% owned Tamdykol oil project in Kazakhstan.

Well 1E is the first of four exploratory wells to be drilled by NEK Service LLP ('NEK'), a local oil company with whom Victoria signed a farm-out agreement for the development of Tamdykol in June 2005. Under the terms of the agreement, NEK are required to fund the drilling of the four exploratory wells, together with all related geological work and construction of all necessary infrastructure.

Target depth of 1,000 meters is expected to be reached within 21 days and preliminary well test results are anticipated in November of this year. The primary target interval is in the 'Tatar' horizon in the Upper Permian, with secondary targets in both the Triassic and Jurassic post-salt sediments.

Commenting today Executive Director William Kelleher said, 'Operations at Tamdykol are up and running with our new local partner and Victoria expects first test results in November of this year. NEK has been in business in the region for over 12 years and their coordinated effort with our technical team has already uncovered some exciting potential in the post-salt and sub-salt horizons at Tamdykol. By working closely with our partner Victoria been able to minimize the project risk and maximize the potential of an oil discovery.'

Tamdykol, a five square kilometer license area in the post-salt depth region of the Emba oil and gas province of the Pre-Caspian basin, was acquired by Victoria from Celtic Resources Holdings Plc in August 2004. Prospect drilling on the Sagiz Block of Emba, to which Tamdykol belongs, has so far yielded several oil and gas discoveries. Potential recoverable C3/D1 resources are estimated by Victoria at approximately 34 million barrels of oil beneath a sub-salt overhang in the post-salt and sub-salt depth intervals.