5 Sep 2008 07:00
5 September 2008
VOLGA GAS PLC
("Volga Gas" or the "Company")
Drilling Update - Uzenskaya #3 ("Uz#3")
Volga Gas Plc is pleased to provide an update on well Uzenskaya #3 (the "Well") in the southern sector of the Karpenskiy Licence Area.
Highlights
Well tested 2,000 bbl/day of 45 API oil in open hole testing
Well will be hooked up to existing facilities and brought on production in early 4Q
Well #3 was an exploration well targeting a Jurassic structure close to the Uzenskaya field which was discovered by Well#1. An interval between 989.5-1011.3 meters was tested. The well flowed at an equivalent of 353 cubic metres of light oil per day (~2,000 bbl/day) in drill stem test. Testing confirmed the horizon's excellent permeability. Management believes that the well will produce at not less than 375 bbl/day once brought in to production.
The well is currently being hooked in to the existing Uzenskaya facilities. It is expected that commercial production from this well will commence in a month.
Well Uzenskaya #4 has been spudded based on 3-D seismic and has been designed to confirm the extent of the field.
Mikhail Ivanov, Chief Executive of Volga Gas commented:
"We are delighted with the new discovery. The well indicated good permeability and produced good quality oil. Uzenskaya #4 will provide us with further information on the extent of the field."
- Ends -
Volga Gas is an independent gas exploration and production company, which currently holds four subsoil licenses in the Volga Region of European Russia
For additional information please contact:
| Financial Dynamics |
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| Billy Clegg Alex Beagley |
| +44 (0)20 7269 7157 +44 (0)20 7269 7207 |
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| KBC Peel Hunt (Nominated Adviser) |
| +44 (0)20 7418 8900 |
| Jonathan Marren Matt Goode |
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The information contained in this announcement has been reviewed and verified by Mr. Mikhail Ivanov, Director and Chief Executive Officer of Volga Gas plc, for the purposes of the Guidance Note for Mining, Oil and Gas companies issued by the London Stock Exchange in March 2006. Mr. Mikhail Ivanov holds a M.S. Degree in Geophysics from Novosibirsk State University. He has also MBA degree from Kellogg School of Management (Northwestern University). He is a member of the Society of Petroleum Engineers.