Victoria Oil Pleasantly Surprised with Kemerkol Well Results

Victoria Oil & Gas Plc on Thursday announced better-than-expected test results from Well 73 at its wholly owned Kemerkol oil project in the Atyrau Oblast of Kazakhstan.

The first of a new six-well development program at Kemerkol, Well 73 was successfully drilled to a depth of 1,250 meters penetrating the Triassic formation updip of Well 20. The well intersected three oil-bearing intervals between depths of 1,169-1,208 meters, with a combined gross thickness of over 30 meters.

The intervals flowed oil at a rate of 450 barrels per day with no water and only traces of gas from a 20-meter perforation interval on a 12-millimeter choke. During the flow period for the pressure build-up survey, the well produced 440 barrels per day at a reduced choke size of seven millimeters. The choke will remain at this reduced size during an initial production period of four to six weeks, after which it can be enlarged to optimize oil output.

Meanwhile the drilling rig has been mobilised to the site of the next well, 62, on the eastern side of the license block. The eastern side was not mapped in detail by the previous 2D seismic survey, but the Company's own 3D survey has revealed a number of potential targets.

The workover of Well 20 has been completed, but the Company is awaiting the necessary permits to be issued by the relevant Kazakh authorities before test production can recommence.

Tony Porter, CEO of Victoria Oil & Gas, said:

"Well 73 has exceeded our expectations and given us the perfect start to our development campaign for Kemerkol. We had anticipated a flow rate close to that of Well 20's original production level, but instead it is significantly higher. I should also point out that we are still not at the crest of the formation. We are almost ready to begin drilling of Well 62, our next target on the other side of the license block. This area had not previously been explored in as much depth and a good result could be very significant for Kemerkol and Victoria."