Victoria Oil & Gas: Fundamentals & Valuation Summary

siwel,

The fact does remain they are now a producer, not just exploration.

Current Mkt Cap is now only some £72m. Whilst production may not be in full swing at Kermerkol yet, it would certainly seem from the recent production statement that the situation would be chnging for the better. (See Below)

Production

March 2006 saw a significant milestone for the Company when the Kemerkol oil
project in Kazakhstan brought us our first oil production from the initial
re-entry operations. Limited finance has restricted our ability to develop the
Kemerkol field as originally planned, but that situation is set to change
following the completion of our latest financing in October.

Shareholders should know that the foundation of our exploitation programme for
Kemerkol is a modern and detailed 3D seismic survey, which is being completed by
our technical staff in Almaty. A comprehensive understanding of the subsurface
geology will greatly reduce the risk of each new production well location. This
will improve the efficiency of our drilling operations and accelerate our
production increases.

Another important step for us will be the conclusion of negotiations with the
Government of Kazakhstan to exercise our right to convert our current subsurface
exploration contract into a production contract. At present, we are restricted
to selling our oil into the domestic market, for which we receive the local
price. With a production licence, we will be permitted to apply for an export
quota in the KazTransOil pipeline system and be paid higher oil prices on the
export markets.

Siwell, VOG operate in a difficult part of the world, nothing is plain sailing, but the rewards are there IMO. Lets see their next updates and formulate our opinions accordingly.