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Appointment of New Chief Executive Officer

26 Feb 2013

 

Victoria Oil and Gas (“VOG” or the “Company”), the AIM quoted emerging market natural gas utility and independent oil and gas exploration and production company with producing assets in Africa and exploration assets in the Former Soviet Union, is pleased to announce the appointment of John Scott as the Chief Executive Officer of the Company, with immediate effect.

Mr Scott has undergraduate and post graduate engineering degrees, and initially trained with Royal Dutch Shell before furthering his education with an MBA from the London Business School.

Mr Scott has more than 30 years’ experience of upstream and downstream oil and gas operations both in industry and in energy banking. He previously served in technical and senior commercial roles with the British National Oil Company and Halliburton. In addition, Mr Scott has held various investment banking roles with Citigroup, Standard Bank and ABN Amro.

Mr Scott has extensive corporate finance and transactional experience in West Africa and Russia and has established strong business relationships within these regions. He was a founder of Toronto Venture Exchange-listed Exile Resources Inc, a West African oil and gas exploration company that merged with Oando Plc, a Nigerian oil producer. In Russia, Mr Scott has completed several high profile oil and gas transactions including the acquisition and disposal of gas assets during his time as an energy investment banker and as a Regional Director of Halliburton.

Mr Scott joins VOG from Indus Gas Plc (“Indus”), a successful oil and gas exploration company with high-quality assets in Rajasthan, India. Indus is one of the largest oil and gas companies by market capitalisation on the AIM market of the London Stock Exchange.

John Scott (aged 54):

Current Directorships:

Abbeymount Services Limited

Past Directorships (within 5 years):

Indus Gas Plc

There is no further information to be disclosed pursuant to paragraph 2 (g) (iii) - (viii) of Schedule 2 of the AIM Rules.

Mr Scott commented, “I look forward to joining VOG which has achieved the fastest domestic gas monetisation project in Africa to date. VOG has secured an enviable position in Cameroon with a growing energy hungry market. I am excited about the future of the Logbaba asset and increasing cash flows from this project will provide the base from which to build the Company into a real success story.”

Kevin Foo, Chairman of VOG commented, “John has helped steer Indus through a period of major growth in shareholder value and has outstanding operational and transactional experience. We believe he is the right man to guide VOG through its transition to a successful mid-cap oil and gas company over the next few years.”

About Victoria Oil & Gas

Victoria Oil & Gas Plc is an emerging market natural gas utility and independent oil and gas exploration and production company with producing assets in Africa and exploration assets in the Former Soviet Union. The Company's principal assets are the Logbaba gas and condensate project in Cameroon and the West Medvezhye project in Siberia, Russia. Logbaba is located in Douala, the largest city and industrial capital of Cameroon. The field was discovered in the 1950s when all four exploration wells drilled at the time encountered gas. The Company drilled two successful development wells in 2009/10 and was awarded an Exploitation Licence in April 2011.

The Company’s Logbaba natural gas and condensate field is estimated to hold sufficient proven and probable reserves to supply an average of 30 mmscf/d for the next 20 years to industrial customers. Under current management projections, the Company forecasts industrial gas demand to rise to 44 mmscf/d along the current and planned pipeline expansion route. In the next 18-24 months, the Company will continue meeting the known demand of contracted customers and connecting them to the Company’s infrastructure to generate increased sales and revenues. The Company has signed gas sales agreements with industrial customers to serve their energy requirements and anticipates in excess of 40 customers over the medium term. In the longer term, the Company will investigate the potential opportunity to supply natural gas to large gas-fired power stations connected to the grid, with either VOG investing in an independent power producer joint-venture or selling the gas to third parties.

West Medvezhye is situated in the prolific Yamal-Nenetsk hydrocarbon region in Siberia. An independent audit, carried out by Mineral LLC in 2011, estimated prospective resources for the area of over 1.4 billion barrels of oil equivalent (‘boe’). The Company also has a discovery well, 103, with C1 and C2 reserves, independently assessed under the Russian classification convention of 14.4 million boe as approved by the Russian Ministry of Natural Resources.

Development studies are in progress to commercialise the Well-103 discovery and prospective resources and a detailed well design study for the upcoming drilling campaign has commenced. The Company is currently investigating potential a farm-out or a joint-venture or alternative options relating to West Medvezhye ahead of the upcoming drilling programme.