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http://www.investegate.co.uk/victoria-oil---38--gas--vog-/rns/final-results/201310250700053729R/

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VOG is presently drilling Well 104 in its West Medvezhye field,and expected to reach depth in 4 weeks from spud date of 30th June, that makes 27th July(this week).
Results of testing will be sometime mid/late August, with a positive outcome
it could be HUGH.
With estimates of 134BILLION cubic metres of GAS and 201 Million barrels of Gas
Condensate,it will be a Company Maker. The field is in the area of the largest gas field in the WORLD.
Other assets include Kemerkol in Kazakhstan, with C1 reserves of 8.7MBO
and C2 reserves of7.8MBO. Another acquistion is Tamdykol with potental
reserves of 34MBO, it also has interest in 2 blocks in the North Sea.
You can check it out on www.uk-wire.com, and its own site of www.victoriaoilandgas.com.
It has excellent management team led by Kevin Foo, who hopes to turn it into
a Mid Cap Company(�500m+) in the not to distant future.
As i stated earlier in the post, Drilling is almost complete so it won't be long to Lift Off?
Well, Well worth checking out.
cyril

http://www.investegate.co.uk/Article.aspx?id=201111040700164867R

http://www.investegate.co.uk/Article.aspx?id=201111290700139263S
http://www.investegate.co.uk/Article.aspx?id=201112200700132888U
http://www.investegate.co.uk/Article.aspx?id=201207090700051587H
http://www.investegate.co.uk/victoria-oil---38--gas--vog-/rns/rsm-default/201401130700074445X/
http://www.investegate.co.uk/victoria-oil---38--gas--vog-/rns/interim-results/201402280701321590B/
http://www.investegate.co.uk/CompData.aspx?code=VOG&tab=announcements

After taking stock of things today, I have come to the following conclusion regarding Well 104:

It is not a 'duster' and they have had a positive result from it. However, they obviously feel that there is the potential for a lot more- hence the fracture stimulation.

I say this as the MD talks about 'maximising the information gathered', so they have obviously got something from it.

I also believe that the bit about hoping to 'further increase the potential recoverable resources at the project' is based upon the test results they currently have (the 'information gathered') from Well 104.

Therefore I believe that any talk of Well 104 being a 'duster' is nonsense.

In view of this, the best course of action is to sit tight for a few weeks. If they had announced this Developmental Update a few weeks ago, the share price probably wouldn't have reacted in this way, as fracture stimulation is no big deal in this game.

Nothing has really changed except the time frame

But time frame or delays in any business means money!

dt014... hope you're right mate! am holding on for now...normally, when I hold after releases like this I usually end up regretting it !.

Maybe it is a "duster" and the're just trying anything possible to minimse the impact when they announce the disappointing outcome... perhaps the're just making sure that they have tried everything and left no stone unturned....

Still going south but am a commited VOG fan - I reckon the support level will be 2.00/2.10 - any takers ?

crap isn't it !

Can't see why the've marked it down so badly if the news is going to be ok but just delayed!... it's an opportunity for them to pump and dump. the've pumped.. so now the're dumping... hopefully we'll see the bottom soon and it'll be time to top up with some more...

sky, mm's are there to make a market and they make money by trade volume. They mark it down and people sell...they make money. Just part of the game. Personally, at this stage I don't see this as a sell signal. There's no doubt that there is much good news factored into the price, but I'd rather hold than let the mm's have my shares cheap. I DO NOT agree that the price can be marked down 20% odd on this news. Just my opinion chaps!

I'd consider the current prices to be a buying opportunity - but am already overweight this one so am just sitting it out till May. Definitely not scared of the MM's or the bears.

In my opinion this could be a good buying oppertunity. The same thing happened with the share price when the EGM was announced. The value of the company is in the assets. Now they have some oil production they also have some income, and that will fund the drilling program, even if they turn the site into a swiss cheese on the way. You need to be an expert in the oil and gas industry to understand if the RNS was a positive or negative one. When the price drops so quickly, most people will assume it's bad news. The same thing happened with EME when they came out with some drilling results. A few weeks later it was flying. Just my opinion of course. Always do your own research.

Strawbs.

Up we go, buying opportunity gone???

Depends on how fast you move, silver :o))

we love you vog!

I love NOP and BLR too. Is that allowed?

i love kmr

READ BETWEEN THE LINES-TESTING THE ACCURACY OF THE RESULTS,I think there is more down there than they thought,but they can't get it out without another well.IMO.

27 March 2006

Development Update on West Medvezhye Project , Russia

Fracture stimulation of Well 104 and drilling of a twin well to optimise on-going testing with results expected May 2006

Drilling commenced on appraisal Well 106 with completion expected April 2006

Drilling commenced on new exploration well, Well 103, with completion expected in May 2006

The Board of Victoria Oil & Gas Plc (Victoria or the Company), the oil and gas company operating in the For me r Soviet Union; today announces an update on development of its West Medvezhye gas and gas condensate project in Western Siberia, Russia.

Perforation and testing of Well 104 continues and it has been decided to fracture stimulate the 1,100 me tre horizon to clarify its production potential. It has also been decided to drill a twin well alongside Well 104 to allow for the simultaneous fracture stimulation and well testing to increase the accuracy of the testing results.

Due to of these refinements to the testing programme full test results for Well 104 are now expected in May 2006.

Drilling at Well 106, located about two kilometres east of discovery Well 104, has commenced and is expected to be completed to a depth of 1,350 metres in April 2006. This well is designed firstly to delineate and confirm the subsurface accumulation of the Danniella Field and secondly to test the Cenomanian horizon, which is the main productive horizon of Gazproms giant neighbouring Medvezhye field.

Drilling operations also commenced at the Companys new exploration well, Well 103, on 22 March. Well 103 will be drilled to a depth of 3,850 metres to test a Jurassic horizon in an independent structure to the west of the Danniella Field. Well 103 is expected to be completed in May 2006.

Commenting today William Kelleher, Managing Director, said, To maximise the information gathered at West Medvezhye we have taken the decision to drill an additional well at 104 and to conduct extended testing within the existing wellbore. We expect to report detailed results from the Danniella Field in the coming months when we hope to further increase potential recoverable resources at the project.

Back to home page

Victoria Oil & Gas Plc
all rights reserved

It seems obvious to me that if you've just spent a ton of money and found nothing or very little you wouldn't chuck good money after bad. So this must mean they have potentially found more and hence the extra drilling and wait even better news.

I wanted to find out a bit more about fracture stimulation, so I typed "fracture stimulation gas well" into ask.co.uk.

Found this under:

http://searchanddiscovery.com/documents/2005/cramer/index.htm


"Hydraulic fracture stimulation often dictates the economic outcome of wells completed in low permeability gas reservoirs."



There is also a dictionary of petroleum industry terms under:

http://www.osha.gov/SLTC/etools/oilandgas/glossary_of_terms/glossary_of_terms_p.html

It gives this definition:

>>frac fluid n: a fluid used in the fracturing process (for example, a method of stimulating production by opening new flow channels in the formation surrounding a production well). Under extremely high hydraulic pressure, frac fluids (such as distillate, diesel fuel, crude oil, dilute hydrochloric acid, water, or kerosene) are pumped downward through production tubing or drill pipe and forced out below a packer or between two packers. The pressure causes cracks to open in the formation, and the fluid penetrates the formation through the cracks. Sand grains, aluminum pellets, walnut shells, or similar materials (propping agents) are carried in suspension by the fluid into the cracks. When the pressure is released at the surface, the fracturing fluid returns to the well but leaves behind the propping agents to hold open the formation cracks.<<

There are lots of other references to this process available to view online - too many to mention but certainly worth a browse.

The bottom line for Well 104 appears to be that gas is present, but held in rocks of a type that don't release it easily. Fraccing helps to open up the rock formation so that gas is released.

Clearly if it's successful then things could be very positive indeed for Well 104.

Case Study: Fracture Stimulation Doubles Mature-Field Production Rates




Click to view

Fracture stimulation restored production.



Benefits
Doubled gas production rates.
Reduced water production.
Lowered future treatment expense.




Marathons Beinn field, a high-pressure, hightemperature development on the UK Continental Shelf, began producing in 1994. Recoverable reserves initially were estimated at more than 113 106 m3, but production declined to 15 % of its peak in only 5 years. To evaluate the causes of the production decline, Marathon UK formed a working relationship with Schlumberger.

Testing, analysis, and rigorous preplanning were the keys to project success. Schlumberger Data & Consulting Services evaluated the technical feasibility of a stimulation project and provided expertise to optimize a production logging program. Results from production logging were then used to improve existing reservoir models, and a multilayer reservoir test was performed to quantify the productivity index of the individual reservoir zones. Finally, an economic study identified zones with the highest probability of success.

Based on these evaluations, fracture stimulation was proposed and a plan agreed upon. Target perforated intervals were isolated using mechanical zonal isolation techniques, and the fracture treatment was performed, placing unprecedented amounts of proppant into the Brae Formation.

Stimulation results
The project doubled hydrocarbon production rates in the Beinn field while decreasing water production and subsequent treatment costs. Projected benefits included an estimated USD 10 million per year for Marathon and its partners.

Project innovations
The project was one of the first applications of ScalePROP scale-inhibitor-impregnated proppant, which ensures that the fracture remains free of scale, thereby retaining its fluid conductivity. The project also saw the first use of a lift-log procedure in which memory production logging tools were deployed on coiled tubing. After flow was initiated by injecting nitrogen through the coiled tubing, logging passes were performed immediately, before the coiled tubing was retrieved.

Successful risk-sharing business model
Faced with a severe production decline that was not well understood, the company was reluctant to commit capital to an expensive diagnostics and intervention project. To justify a final attempt to restore production, Marathon entered into a shared risk-reward agreement with Schlumberger for diagnostics and intervention expertise and equipment. The economic return from this successful project, for both the operator and Schlumberger, justified the approach and set an example for similar projects in other mature North Sea fields.


Related resources
Case study in PDF format (136 KB PDF)

Study Details




Case Study: Fracture Stimulation Adds 3,000 bbl/d, Pays Out in 14 Days




Click to view

Scott J-9 production restored.



Benefits
Increased production by 3,000 bbl/d [477 m3/d]
Validated a new excessproppant reverse-out method using coiled tubing




The Amerada Hessoperated Scott oil field began production in September 1993; Well J-9 came on line in February 1996 and flowed naturally, but production declined rapidly. In 1997, water injection was implemented in the field to raise fault-block pressure to 58.61 MPa. Production rose dramatically, but again declined rapidly because of near-wellbore damage, primarily scale.

A NODAL analysis, proposed by Schlumberger Data & Consulting Services (DCS), indicated an extremely high skin (+80), which was confirmed by well test analysis. The primary cause was near-bore scale buildup, with secondary contributions from asphaltenes and fines migration. DCS predicted that fracturing the well would increase its PI by a factor of 30 or 40 and boost production to 2,000 bbl/d [318 m3/d]. An economic evaluation indicated an NPV of USD 4.8 million and a project payout of 47 days.

Hydraulic fracturing
As part of the prefracturing planning, step-rate testing was performed to determine formation breakdown pressure in the Scott sand. The hydraulic fracture was then designed: 80,000 lbm of 20/40-mesh, resin-coated proppant placed at 30 bbl/min. ScalePROP proppant, impregnated with scale inhibitor, was added to the main proppant pack at 8.6 % by weight, to protect the pack during the first 320,000 bbl [51 m3] of water production.

Postfracture innovation
In the preplanning stage, Schlumberger stimulation engineers recognized that because Well J-9 is highly deviated (48 hole angle) it was likely that proppant would remain in the wellbore after treatment. This proppant could not be circulated out in the conventional way because of the high circulation rate required (>10.5 bbl/min, or 1.7 m3/min). Instead, coiled tubing was employed in a scheme that required a circulation rate of only 0.4 bbl/min [0.06 m3/min]. A sand plug was set to protect the fracture during the cleanout operation. This was the first use of the coiled tubing reverseout technique in the North Sea.

Results
Results of the fracture treatment far exceeded predictions. After 30 days of production, the well produced at 3,272 bbl/d [520 m3/d], with an initial PI of 1.2, as compared to the pretreatment PI of 0.05. After 9 months, the PI was in the range of 1.0 to 1.2, and NODAL analysis indicated a negative skin (2.1). With this dramatic increase in productivity and production, payback for the treatment was only 14 days.

The success of this project led to a campaign to identify other wells in the Scott field that were candidates for similar fracture treatment.

This is from IEC's rns on friday:

Fraccing is a recognised, proven and widely used method of stimulating and
enhancing oil flows from tighter reservoirs. It has been successfully used by
Imperial and the other major oil companies operating in Western Siberia making a
material difference to critical flow rates.