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Victoria Oil & Gas announces an operational update on the testing of Well 103 at its wholly-owned West Medvezhye gas and condensate project in Western Siberia, Russia. Well 103 is located in the central part of the 1,224 square kilometre licence area and is one of 26 prospects identified by independent reserve auditors. In January 2007, the well was perforated and flowed at a rate of approximately 350 barrels per day of light oil. Natural flow was impaired by residual completion fluid, which adversely affected results obtained during testing.
After extensive operations a total of 25 cubic metres of fluid was recovered leaving approximately 20 cubic metres still remaining. A Pressure Build-Up (PBU) test was then carried out over 15 days. The maximum registered pressure was 564 bar indicating that the reservoir is significantly over-pressured.
In order to displace the remaining completion fluid, the Company now plans to circulate condensate into the wellbore. Regular flow is then expected to be established, another PBU survey carried out and a bottom-hole sample taken, to derive reliable reservoir parameters. These procedures should be completed in the fourth quarter of this year.
The data provided from these tests will be analysed and submitted to the Ministry of Natural Resources together with the calculation of recoverable reserve volumes for the structure around Well 103. On approval of the data and calculations, any recoverable reserves will be entered into the official record of Russian State Reserves.
Tony Porter, Chief Executive Officer of Victoria, said today, "Well 103 is the first exploration well to be drilled to this depth on the block. The tests conducted so far confirm the presence of hydrocarbons and significant reservoir pressure in the target horizon, but the key parameter of permeability has not yet been fully determined."
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