Victoria Oil & Gas Confirms 1 Billion boe at West Medvezhye Project

Victoria Oil & Gas

Victoria Oil & Gas has received a preliminary revised resource statement from independent reserve auditors DeGolyer & MacNaughton for the whole of its 100% owned West Medvezhye gas and condensate project in Russia.

This statement confirms a new expected case gross prospective resource volume for the Project of 1.0 billion barrels of oil equivalent consisting of 5.1 trillion cubic feet of gas, 124.0 million barrels of condensate and 24.6 million barrels of oil.

The results of testing the 550 meter and 610 meter horizons at Wells 104, 104-Bis and 106 show that these horizons are non-commercial. Having discussed this with D&M, the Board has decided to refocus the allocation of its resources on the exploration and further development of deeper horizons in the 1,440 square kilometer (555 square mile) license area, which are the productive horizons of the adjacent main Medvezhye field.

The development of these horizons is underway with the drilling of Well 103, which has reached a depth of 1,653 meters. This well will test a new structure, for which D&M have estimated a gross prospective resource volume of 639 billion cubic feet of gas and 32 million barrels of condensate, (138.5 million barrels of oil equivalent).

The next target will be Well 105 located in the North-West corner of the license area, which has been labelled the North-West Closure. D&M have estimated gross prospective resource volumes of 559 billion cubic feet of gas and 20.2 million barrels of condensate at this location, (114.0 million barrels of oil equivalent) and work is expected to commence towards the end of this year.

Commenting on the results, Managing Director William Kelleher said, "West Med still has confirmed expected resources of one billion barrels of oil equivalent as the shallower horizons of Danniella contributed less than 10% to the previous total expected resources.

"We are now entirely focused on the most prospective areas of the license block and we are currently pursuing exploration at the deeper targets in Wells 103 and 105."