VGAS.L Share News (VGAS)

Volga Gas, the oil and gas exploration and production group operating in the Volga Region of European Russia, virtually eliminated losses in the first half of 2009 as the revenue started to roll in.Loss before tax in the six months to 30 June 2009 narrowed to $0.22m from $5.03m in the first half of 2008, while revenue catapulted higher to $3.37m from $0.11m a year earlier, as the company started production at its Uzenskoye field. 'The results of our production have enabled us to report a first period of positive EBITDA [earnings before interest, tax, depreciation and amortisation] and positive operating cash flow - an important milestone for our company,' said Mikhail Ivanov, chief executive officer of Volga Gas.The company is debt free and had cash of $14.6m at the end of June. 'The company remains well capitalised and able to progress towards testing the potentially value transforming sub-salt potential of our licences,' Ivanov added.