Operations

Kemerkol, Kazakhstan

In 2005 Victoria acquired 100% of the Kemerkol exploration and production licence, located in the Atyrau Oblast of Western Kazakhstan close to a number of existing oil and gas fields. Kemerkol is a 65 square kilometre oil field with 8.7 million barrels of proven C1 reserves and 26.3 million barrels of C2, with a further C3 resource of 25.1 million barrels.

In March 2006 Victoria became an oil producer with the successful re-entry of Well 20 and began to receive its first revenues.

The Company is currently producing around 300 – 400 barrels per day from Wells 20 and 73. All production is sold to a local oil trader at well-head following basic separation at the Company’s facilities. With increased production volume, Victoria will be able to undertake its own oil processing and certification and ultimately an export contract.

During 2008, the Company’s technical team will conduct a thorough reinterpretation of the subsurface data collected during drilling operations in 2007 to identify, in co-ordination with Blackwatch, the primary drilling targets for the coming year. The short-term goal is to increase production from the field sufficiently to gain an export licence and significantly increase revenue generation.