Victoria Oil and Gas Plc AIM LSE: VOG

Rayrac,

I always have,as the well 103 is about to get perforated and about to go to flow testing, you would have to be mad to be short on this well below convertible minimum strike price.

As temperatures in Siberia plunge to minus 65 degrees you can bet the weather fronts coming from the North East coming our way in Western Europe are going to plunge, hence bull oil and gas demand goes up massively for Central Heating, Electricity etc

As the Natural Gas and Oil Price spikes massively the value of LSE:VOG's assets in the ground at West Med alone a Prospective Resource of 1,100,000,000 BOE

You already know Gazprom Residential US$56 per 1000 M3 and Industrial US$93 per 1000 M3 Sales Prices (refer Businessweek post 273), you already know the transportation price, you already know there is gas there from Company RNS Streams.

The market capitalisation at 115,651,160 shares at say offer 62.50p is just £72,281,975, incorporating £20,000,000 Cash Gross raised from first tranche of recent financing, and a further £25,000,000 available following AGM Approval on 29th December 2006.

In effect even if you say despite this being convertible, it is debt senior to equity, ie £45,000,000, the effective net valuation for VOG net of this debt is just £27,281,975, for 1,100,000,000 BOE Prospective Oil, Gas and Condensate Resource?

Daft.

Then there is issue of existing production in Kakakhstan from Kermekol etc estimated to be 1,800 BOPD by end 2006 refer:-



I would value a 1,800 bopd producer at US$60,000 per bopd valuation at US$108,000,000 alone.

I think the problem here is that too many posters do not understand Oil and Gas exploration, nor the time it takes to flow test wells, typically 90 to 120 days before you know whether a find is commercial or not.

As far as I am concerned during 2006 LSE:VOG have put a series of positive news releases out showing serious advancement of their projects, the Directors have been busy flying back and forth to Russia and Kazahstan moving their projects forwards, yet all I see is organised 24/7 deramping of the share, without any realistic appraisal of the value of LSE:VOG Assets nor the progress the company is making.

Rome wasn't built in a day any more than Gazprom or Exxon Mobil was!

I believe this share is massively undervalued at these levels, and I hope that if LSE:VOG have a reasonable attendance at their AGM on 29th January 2006, if 103 flow tests prove economic sustainable flow rates, we will become nearer to being part of a longer term significant oil and gas producer.

Far too few understand that Russia is governed by the weather and seasonality as are Oil and Gas markets, the Winter is certainly no time to be bearish oil and gas stocks, least of all Gas stocks in Russia which supplies 26% of the World's Natural Gas and the majority of EU Supplies.

Your comments about VOG not likely to be in production for a year or two are inaccurate, firstly Kermekol is already producing, and effectively from the time a well is perforated and is flow tested and tied in to existing Gazprom pipeline network you are in production, if 103 proves a success, you could easily see West Med in production in 2007, you only need to look at pipeline infrastructure there of Gazprom to see this.

Surely if you genuinely wanted to know what was going on in VOG you would just ring the Company and ask them to explain the programme?

All IMHO, NAG,DYOR etc

Cheers

Ash:)