Victoria to Run Another Test at West Medvezhye Well

Victoria Oil & Gas Plc on Tuesday announced progress on the testing of Well 103 at its West Medvezhye gas and condensate project in Russia.

Well 103 was successfully perforated in the J2 Jurassic horizon between 3,794 - 3,799 meters in early January with an initial flow rate of 350 barrels per day of condensate and light oil.

The well continued to produce condensate and light oil for the duration of the test at a daily rate of approximately 350 barrels. However, it also produced water, which was determined to be completion fluid unsatisfactorily swabbed from the well-bore by the testing contractors. Victoria believes that the hydrocarbon flow rates from the test may have been negatively affected by this water and so will conduct a second, accelerated well test to confirm results.

The accelerated test is expected to commence in the next two weeks conditions allowing and will take approximately 6 – 8 weeks, after which time the data will be analysed to provide a meaningful assessment of the reservoir characteristics. The data will also be submitted to independent reserve auditors DeGolyer and MacNaughton for integration into their resource volume calculation for the field.

Tony Porter, CEO of Victoria Oil & Gas, said: "The well has so far been producing at a rate of around 350 barrels per day, but we believe that this may not be indicative of the potential hydrocarbon flow. This test is very important for the future exploration of the asset and achieving the best quality results possible is vital, even if this lengthens our testing period. An early thaw of the permafrost has frustrated our efforts to commence the test sooner, but we anticipate that the new test will prove more productive."