VGAS.L Share News (VGAS)

Oil and gas production group Volga Gas has completed an independent evaluation of the its oil, gas and condensate reserves by Miller and Lents.The independent assessment focused on the reserves and net present value of future net revenue attributable to the Company's three principal fields in Russia; Dobrinskoye, Vostochny Makarovskoye and Uzenskoye, as at August 1st 2012.The reserve report attributed proved and probable reserves of 16.1m barrels of oil and condensate and 167.5bn cubic feet of gas, for a total of 44.0m barrels of oil equivalent to the company's principal fields, and a net present value of $301.2m with a 10% per annum discount rate.Mikhail Ivanov, Chief Executive of Volga Gas commented:"This report is a welcome third party validation of our reserves and the NPV [net present value] attributed to them, which highlights the potential value contained within our acreage. We look forward to delivering this value as well as further exploration and appraisal opportunities."The price of shares in Volga Gas rose 0.60% to 84p per share at 13:30 on Thursday.MF