1. Victoria Oil and Gas Plc.
West Medvezhye License Area
A Review of Selected Prospects
July 2006

2. Agenda
• The West Medvezhye license
• Prospective Horizons
• Wells 103, 105, 107, 109
• Probabilistic Analysis
• Gross Prospective Resources

3. The West Medvezhye
License Area
• Located in the Nadym-Pur
hydrocarbon province just east of
the Ob Bay
• Just west of the Medvezhye field
– A large Cenomanian (PK1) field
– EUR 1.6 1012 m3 of dry gas
• Good quality 2D seismic data
• Potential structural and
stratigraphic traps
• Prospects exist in the Upper
Neocomian reservoirs, Neocomian
Shelf Complex, Achimov
clinoforms, and Jurassic reservoirs

4. West Medvezhye and the Surrounding Area
West Medvezhyе Field
Urengoi Field
Medvezhye Field

5. West Medvezhye and the Surrounding Area
AY
YAB
KA
OBS
EAST-
MEDVEZHIE
Medvezhiya
3
MEDVEZHIE

6. Generalized View of West Siberian Geology
Shallow water – upper
shelf
Lowstand Prograding shelf edge
wedge –
Incised
Canyon
Base of slope – deep
water
Bajenov – basinal facies

7. Prospective Horizons
• Upper Neocomian - Upper Delta Facies
• Lower Neocomian – Shelf Edge Facies
• Achimov – Neocomian Base of Slope Fans
• Jurassic – Continental Deposits

8. Upper Neocomian Prospects
105
• BN1, BN4, BN5, BN7, BN8
• Thin, laterally variable shallow marine
sand and sand-silt deposits
• 4-way closures 109
• Northwest portion of the license
107
103

9. Neocomian Shelf Prospects
105
• BN9-3, BN10, BN11, BN12
• Major risks: reservoir and trap
• Requires a stratigraphic trapping 109
component to be successful
107
103

10. Achimov Prospects
105
• Achimov BN11, BN12, and BN13
• Lower slope sands and silts
• Major risks: reservoir and trap
109
• Stratigraphic and stratigraphic-
structural traps along strike or across
3-way structural closures
107
103

11. Jurassic Prospects
105
• Several potential Jurassic reservoir
segments
• Non-marine sandstones associated with
channel features 109
• Stratigraphic and structural trapping
along strike or across 3-way structural
closures 107
• Reservoir quality rock will depend on
natural fracturing for most prospects
evaluated.
103

12. Proposed Locations (Wells 103, 105, 107, 109)

13. Well 103
• BN-10 High Energy, BN-11
Central, BN-12 South: Shelf
edge, outer delta sands. Up-dip
pinchout
• Secondary targets: Achimov,
Jurassic
• TD 3,900 meters
Gross Prospective Resources
Unadjusted Pg Adjusted Best
Best Estimate Estimate
Depth Gas Pg Gas Condensate
Prospect (m) (109ft3) (decimal) (109ft3) (103 bbl)
BN10 HE 3,112 355.8 .180 64.0 3,202
BN11 C 3,323 132.1 .238 31.4 1,575
BN12 S 3,621 150.9 .238 35.9 1,805
Totals 638.9 .206 131.3 6,582

14. Well 103
103
W E
BN9
BN10
BN11-0
BN11
Achimov
Bajenov

15. Well 103
W E
Achimov – deepwater fans
BN12
BN13

16. Well 105
• BN1,2,3,7,8 – Stacked
upper delta sands, 4 way
closure
• BN9-3 – Outer delta sand
draped across structure
• TD 3,700 meters
Top BN9
Gross Prospective Resources
Unadjusted Pg Adjusted Best
Best Estimate Estimate
Prospect Depth Gas Pg Gas Condensate
(m) (109ft3) (decimal) (109ft3) (103 bbl)
BN1,2,3,7,8 2,800 559.0 .295 164.9 5,452
BN9-3 3,080 74.9 .252 18.9 945
Totals 633.9 .290 183.8 6,397

17. Well 105
W Line 3588002
E
BN5
BN10
BN11-0
Bajenov

18. Well 105
S N

19. BN10 Structure
Well 107
• BN10 NW – Amplitude Anomaly
• Fan1 – Lowstand wedge, BN11-0
to BN10
• Achimov 12 Central –
Stratigraphic trap into saddle
• TD 3,700 meters
Gross Prospective Resources
Unadjusted Pg Adjusted Best
Best Estimate Estimate
Prospect Depth Gas Pg Gas Condensate
(m) (109ft3) (decimal) (109ft3) (103 bbl)
BN10 NW 3,210 205.1 .180 36.9 1,833
Fan 1 3,310 1,185.6 .158 186.7 9,289
Ach-12 Cent 3,540 124.2 .208 25.8 1,286
Total 1,514.9 .165 249.4 12,408

20. Well 107
BN10 Northwest – Amplitude Anomaly

21. Well 107
W Dip Line 4004007 E
Bn 10 Hi Amp
Bn 9
Fan 1
Achimov
Bajenov

22. Well 107
Strike Line 4004011
S N
Fan 1
Ach Pinchout

23. Well 109 Bajenov Structure
• BN11 North – Up-dip Pinch-out
• Achimov 11 North Anticline –
Broad sand fairway
• TD 3,750 meters
Gross Prospective Resources
Unadjusted Pg Adjusted Best
Best Estimate Estimate
Prospect Depth Gas Pg Gas Condensate
(m) (109ft3) (decimal) (109ft3) (103 bbl)
BN11 N 3,310 652.0 .158 102.7 5,172
Ach-11 N 3,650 648.6 .208 134.8 6,670
Total 1,300.6 .183 237.5 11,842

24. Well 109
NW 36
SE
101 102 31 63
109

25. Probabilistic Analysis
• Standard probabilistic methods
• Probabilistic distributions of various parameters were
based on known data, analogy, and experience
• 25 prospects evaluated
• Each prospect was risked by the probability of geologic
success (Pg), but probability of economic success
factors (Pe) and threshold economic field size (TEFS)
were not considered.
• Utilized truncated normal or truncated lognormal
distributions to model all variables
• Pg adjusted prospective resources are not comparable to
contingent resources or reserves

26. Estimated Prospective Gas and Condensate Resources as of June 30, 2006
Prospective Gas Resources Prospective Condensate R
Probability Probability
Best of Geologic Pg-Adjusted Pg-Adjusted Best of Geologic
Well Estimate Success, Pg Best Estimate Best Estimate Estimate Success, Pg
Prospect (106ft3) (decimal) (106ft3) (106BOE) (103bbl) (decimal)
Well 103
Bn10HiEnergy 355,799.1 0.180 64,043.8 10,674.0 17,790.8 0.180
BN-11 Central 132,109.6 0.238 31,389.2 5,231.5 6,629.6 0.238
Bn12South 150,945.4 0.238 35,864.6 5,977.4 7,598.2 0.238
Totals Well 103 638,854.1 0.206 131,297.6 21,882.9 32,018.7 0.206
Well 105
Bn-9-3 West 74,918.0 0.252 18,879.3 3,146.6 3,751.1 0.252
NW Closure 558,984.5 0.295 164,894.0 27,482.3 20,191.4 0.270
Totals Well 105 633,902.5 0.290 183,773.3 30,628.9 23,942.6 0.267
Well 107
Bn10 NW 205,107.8 0.180 36,919.4 6,153.2 10,185.3 0.180
Fan 1 1,185,640.0 0.158 186,738.3 31,123.1 58,976.0 0.158
Achimov 12 Central 124,188.3 0.208 25,818.7 4,303.1 6,183.2 0.208
Totals Well 107 1,514,936.1 0.165 249,476.4 41,579.4 75,344.5 0.165
Well 109
BN-11 North 652,010.8 0.158 102,691.7 17,115.3 32,839.5 0.158
Achimov 11 North Anticline 648,578.6 0.208 134,839.5 22,473.3 32,084.5 0.208
Totals Well 109 1,300,589.4 0.183 237,531.2 39,588.6 64,924.0 0.182
Undesignated
BN12 NE 130,655.3 0.144 18,814.4 3,135.7 6,539.4 0.144
Achimov 12 North Forked 262,484.4 0.135 35,435.4 5,905.9 13,062.6 0.135
Fan 3 238,445.6 0.158 37,555.2 6,259.2 11,930.6 0.158
Achimov 13 383,695.6 0.189 72,518.5 12,086.4 19,124.5 0.189
Totals Undesignated 1,015,280.9 0.162 164,323.5 27,387.2 50,657.1 0.162
Subtotals
Planned Wells 4,088,282.1 0.196 802,078.5 133,679.8 196,229.8 0.190
Undesignated Wells 1,015,280.9 0.162 164,323.5 27,387.2 50,657.1 0.162
Grand Totals 5,103,563.0 0.189 966,402.0 161,067.0 246,886.9 0.184
Notes:
1. Application of Pg does not equate prospective resources to contingent resources or reserves.
2. Best estimates in this table are expected values (EV).
3. Only EV's can be arithmetically summed; P90, P50, and P10 cannot be arithmetically summed.
4. Pg is defined as the probability of discovering reservoirs which flow petroleum at a measurable rate.
5. Recovery efficiency is applied to prospective resources in this table.
6. Pg has been rounded for presentation purposes.
7. Gas is converted to oil equivalent using a factor of 6,000 cubic feet of gas per 1 barrel of oil equivalent.

27. Estimated Prospective Oil Resources as of June 30, 2006
Probability
Low Median High Best of Geologic Pg-Adjusted
Estimate Estimate Estimate Estimate Success, Pg Best Estimate
Prospect (103bbl) (103bbl) (103bbl) (103bbl) (decimal) (103bbl)
Upper J Thick 379.9 1,295.1 3,492.3 1,671.7 0.132 220.0
JF NW1 286.1 1,013.8 3,155.4 1,477.7 0.097 143.6
JF NE 537.4 1,971.5 5,993.1 2,768.5 0.097 269.1
JF ECent 372.3 1,376.9 4,495.0 1,975.6 0.097 192.0
JF SCent 507.5 1,963.0 5,616.8 2,694.3 0.097 261.9
JF SWCent 109.2 442.2 1,272.1 629.3 0.097 61.2
JF SW 292.0 1,091.6 3,460.2 1,564.8 0.097 152.1
JF NW2 288.3 1,069.2 3,239.1 1,482.4 0.097 144.1
JF NCentral 697.7 2,567.5 7,389.0 3,486.4 0.097 338.9
JF Central 883.3 3,406.4 9,759.7 4,693.2 0.097 456.2
LJ Channel 483.6 1,640.8 4,334.5 2,165.8 0.132 285.1
Statistical Aggregate 14,244.0 22,749.8 37,309.5 24,609.7 0.103 2,524.2
Notes:
1. Low, median, best, and high estimates follow the SPE/WPC/AAPG guidelines for prospective resources.
2. Application of Pg does not equate prospective resources to contingent resources or reserves.
3. Low, median, best, and high estimates in this table are P90, P50, EV, and P10, respectively.
4. Only EV's can be arithmetically summed; P90, P50, and P10 cannot be arithmetically summed.
5. Pg is defined as the probability of discovering reservoirs which flow petroleum at a measurable rate.
6. Recovery efficiency is applied to prospective resources in this table.
7. Pg has been rounded for presentation purposes.