VOG 2005 New Thread

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Victoria Oil & Gas PLC
22 December 2005

22 December 2005

Victoria Oil & Gas Plc

West Medvezhye Acquisition Update



• Acquisition of remaining shares in ZAO SeverGas-Invest, bringing
ownership of West Medvezhye gas and condensate licence to 100%

• Total acquisition price of US$3.2 million cash, 1.23 million ordinary
shares in Victoria and waiver of outstanding claim of US$2.6 million



Victoria Oil & Gas Plc ('Victoria') (ticker: VOG), the AIM-quoted oil and gas
company operating in the Former Soviet Union, today announces that it has
completed the process begun in early 2005 for the acquisition of the remaining
25.2% of ZAO SeverGas-Invest ('SGI'), the owner of the West Medvezhye gas and
gas condensate licence in Western Siberia, to bring its total shareholding to
100%.



Victoria announced on 17 May 2005 that it had agreed commercial terms to acquire
a further 15.2% but it subsequently discovered a problem with the vendors' title
and suspended the proposed acquisition. Negotiations have continued and now,
having resolved the title issues, Victoria has agreed to proceed with the
transaction and has further agreed to increase the purchase to cover the entire
minority interest.



The consideration for the acquisition is to be satisfied by US$3.2 million cash,
the issue of 1,230,000 new ordinary shares in Victoria, the waiver of Victoria's
outstanding claim of US$2.6 million against the vendors of the 74.8% of SGI
acquired in November, 2004 and release of 1,855,000 shares from escrow. A total
of 3,734,314 shares, are to be held in escrow until 30 April 2006 in support of
warranties that have been given by the vendors.



A recent report by independent reservoir auditors DeGolyer & MacNaughton
estimated an expected recoverable gas resource for the field surrounding the
first exploration well at West Medvezhye of half a trillion cubic feet of gas.



Chairman Kevin Foo said today 'I am very pleased that we have been able to
achieve a breakthrough and bring these negotiations to a conclusion. This will
allow our shareholders to enjoy the benefits of 100% ownership of our exciting
discovery at West Medvezhye.'


For further information please contact:
Kevin Foo / George Donne Jamie Cumming / Tracy Mackenzie
Victoria Oil & Gas Plc Bell Lawrie
+44 (0)207 921 8820 +44 (0)141 314 8103
+44 (0)141 314 8220
Laurence Read/ Leesa Peters
Conduit PR
+44 (0)207 429 6605
+44 (0)7979 955 923






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