BML Balmoral Intl

    RNS Number : 1154G
  Victoria Oil & Gas PLC
  17 October 2008
   


    Victoria Oil and Gas Plc
    ("VOG" or the "Company")

    Further re Possible Offer

    The Board of Victoria Oil & Gas Plc (AIM:VOG) announces an update on its discussions with Bramlin Limited ("Bramlin")(AIM:BML)
concerning a possible offer, which was announced on 23 September 2008.

    The Boards of VOG and Bramlin have signed a non-binding Heads of Agreement ("HOA") covering an all share acquisition of Bramlin by VOG.
The HOA contemplate an offer proceeding by way of a Scheme of Arrangement, which would need the approval of the Guernsey court and the
shareholders of Bramlin.

    The principal asset of Bramlin is a 60% interest in the on-shore Logbaba gas exploration and development prospect in Cameroon
("Logbaba"). A report by independent reserve auditors RPS Energy as of 28 July 2008 concludes that Logbaba has gross proven and probable
reserves of 104 billion cubic feet of natural gas. Currently, all energy demand in Cameroon is satisfied by high cost liquid fuels and
Bramlin has already executed a number of off-take agreements for more than 6 million cubic feet per day for natural gas from Logbaba with
local industrial users.

    The Board of VOG, after consultation with its technical consultants, Blackwatch Petroleum Services Limited, believes that Logbaba is an
excellent asset with near-term cash generation potential and that a geographical diversification of activities is in the best interests of
the shareholders. The project will also give VOG exposure to the increasingly growing domestic natural gas market in Cameroon. 

    The HOA are subject to legal and financial due diligence and include non-solicitation provisions providing for break fee arrangements
consistent with the provisions of the Takeover Code. Kevin Foo is a director of both VOG and Bramlin and has taken no part in the
negotiation of the HOA.

    Rashed S.J. Al Suwaidi, Vice Chairman of VOG said today, "We believe the acquisition of Bramlin offers access to growth opportunities
and we look forward to working with the management of Bramlin to develop the Logbaba property. The project has proven gas reserves with
material upside in a region with a growing demand for natural gas. This deal will also provide VOG shareholders with a wider geographic
exposure, into Africa, and a specific opportunity for early cash flow from an excellent project."

    Enquiries:

 Victoria Oil and Gas Plc    Strand Partners Limited 
 George Donne / Robert       Simon Raggett / Angela
 Palmer                      Peace
 Tel: +44 (0)20 7921 8820    Tel: +44 (0) 20 7409
                             3494

 Conduit PR 
 Ed Portman
 Tel: +44 (0) 20 7429 6611
 M: +44 (0)77333 63501

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