Victoria Oil & Gas Begins Production at Kemerkol Oil Project

Victoria Oil & Gas has begun production from its wholly owned Kemerkol oil project in the Atyrau Oblast of Kazakhstan.

First oil production has been achieved at Well 20 following successful re-entry and re-completion operations. At present, the well is producing 202 barrels of oil per day from perforations in the Triassic horizon (between depth intervals of 1,185 meters - 1,194 meters) with no water and only trace gas.

At the time of this announcement, cumulative production was approximately 545 barrels and the well will be closely monitored over the next few weeks to ensure production rate stabilization. Re-entry and re-completion operations on further shut-in wells are also on schedule and at an advanced stage.

Production from these wells will be supplemented during the year with the drilling of new wells and production levels of 1,800 barrels per day by the end of 2006 and 4,400 barrels per day within three years are targeted.

Commenting, Chairman Kevin Foo said, "This is an important day for Victoria. Our congratulations go to Bill Kelleher and his team for delivering first production from Kemerkol."