Victoria Oil Says Kemerkol's Well 72 Non Commercial

Victoria Oil & Gas has completed drilling of Well 72 at its wholly owned Kemerkol oil project in the Atyrau Oblast of Kazakhstan.

The well was drilled to a total depth of 1,279 meters to further appraise the aerial extent of the producing reservoir in the western section of the license block. The well location was determined using logs from Well 73, a producing well drilled earlier this year and existing seismic data. The main marker horizon (reflector) used for the seismic data interpretation was the Top Triassic, which was encountered in Well 73 approximately 90 meters above the producing horizon.

At Well 72 the Top Triassic was drilled 18 meters higher than in Well 73, as expected, but the target horizon was encountered at 1,198 meters, almost 130 meters below the Top Triassic due to an incursion of additional strata between these two horizons. As these strata occurred below the main reflector, they were not accurately determined on existing seismic maps. The target horizon was therefore intersected below the oil / water contact and oil saturations in this horizon are not sufficient for commercial production.

Tony Porter, CEO of Victoria Oil & Gas, said today, "Our plans for the development of Kemerkol have not changed. We aim to increase both production and reserves by adhering to our exploration program and we firmly believe that this is still achievable. The next well, Well 70, will be spudded in a matter of weeks and will target a promising new structure in the south of the license block. Furthermore, with the completion of this well we will have sufficient data from all new wells to improve greatly our seismic model."