VGAS.L Regulatory News (VGAS)

30 Jul 2009 07:00



30 July 2009

VOLGA GAS PLC

Development Drilling Update

Volga Gas Plc ("Volga Gas" or the "Company") is pleased to provide an update on supra-salt drilling in its Karpenskiy Licence Area.

Highlights

Uzenskaya drilling update

The Yuzhno-Uzenskaya # 9 development well was spudded early in July 2009 targeting the principal Cretaceous reservoir, from which the Uz#3, Uz#4 and Uz#5 wells are currently producing. The well has reached its planned target depth of 1098.6 metres (TD RT) without any problems and encountered two oil bearing zones within Cretaceous sandstone reservoirs as follows:

The well will be connected to the facilities and is planned to be put on production during August 2009.

Meanwhile the Yuzhno-Uzenskaya # 8 development well, also spudded in July is currently drilling ahead at a measured depth (MD RT) of approximately 900 metres. Results from this well are anticipated within the next two weeks.

Mikhail Ivanov, Chief Executive of Volga Gas commented:

"We are pleased that Yu-Uz #9 will add to the three existing producing wells on the Uzenskaya field area, which are currently producing at a rate of more than 1,500 barrels of oil per day. With at least one more development well currently being drilled, we look forward to further increasing production capacity from the Uzenskaya field area in Q3 2009."

Volga Gas is an independent oil and gas exploration and production company operating in the Volga region of European Russia. The company has 100% interests in its four licence areas.

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