Victoria Provides Drilling Update at Kemerkol Oil Project, Kazakhstan

Victoria Oil & Gas has completed drilling of exploration Well 66, commenced operation of pumping at Wells 20 and 73 and commissioned a full geological and geotechnical review of its wholly owned Kemerkol oil project in the Atyrau Oblast of Kazakhstan.

Well 66 was drilled to a total depth of 1,102 meters to explore the eastern section of the license block. Although oil saturations were found in the drill cuttings, the logs indicated that these saturations were not sufficient for commercial production. The Board has decided to delay the spudding of the next well of this campaign until the seismic data is re-evaluated using the subsurface information obtained from the new drilling. Victoria expects this review to be completed during the first quarter of next year.

Production from Well 20 has doubled to 50 bo/d while still running on the original progressive cavity pump ("PCP"). Total production from Wells 20 and 73 currently stands at approximately 300 bo/d due to recent installation of a PCP at Well 73 to optimize output.

"We have found oil in all the wells we have drilled, which shows that the source rock for hydrocarbon generation is present throughout the field," said Tony Porter, CEO of Victoria Oil & Gas. "The challenge now is to concentrate further evaluations on trap and seal. The license block covers a large area of 65 square kilometers and still has significant potential for future discoveries."