VGAS.L Regulatory News (VGAS)

1 Oct 2007 07:01

Volga Gas PLC01 October 2007 1 October 2007 Volga Gas Plc Vostochny-Makarovskoye Well #1 and 3-D Seismic Volga Gas Plc (the "Company"), the independent gas exploration and productioncompany, which currently holds three subsoil licenses in the Volga Region ofEuropean Russia, today announces that it has completed the acquisition of 20km2of 3-D seismic over the Vostochny-Makarovskoye licence area and has spuddedVostochny-Makarovskoye Well #1 ("VM #1"). On September 25, Volga Gas completed the acquisition of 20km2 of 3-D seismicover the Vostochny-Makarovskoye licence area. The acquired data will beprocessed and interpreted in order to develop a more efficient drillingprogramme. The seismic crew will move to the Karpenskiy Licence Area to acquire140 km2 of 3-D seismic over six identified supra-salt structures during thewinter of 2007-2008. On September 30, the Company spudded the first well, VM #1. The Company expectsthat the well will take up to 6 months to complete including extensivemulti-layer testing. Mikhail Ivanov, CEO of the Company, commented: "We have committed to bringing Vostochny-Makarovskoye into production by the endof 2008. The completion of the 3-D seismic and commencement of drillingoperations mark the first step to meeting this objective. Concurrently, we haveplaced the initial orders for gas processing plant infrastructure and areconfident that we will meet our targets." For additional information please contact: Financial Dynamics Jonathon Brill +44 (0)20 7269 7170 Billy Clegg +44 (0)20 7269 7157 Ekaterina Alferova +44 (0)20 7269 7257 KBC Peel Hunt (Nominated Adviser) +44 (0)20 7418 8900 Jonathan Marren Alina Savych The information contained in this announcement has been reviewed and verified byMr. Mikhail Ivanov, Director and Chief Executive Officer of Volga Gas plc, forthe purposes of the Guidance Note for Mining, Oil and Gas companies issued bythe London Stock Exchange in March 2006. Mr. Mikhail Ivanov holds a M.S. Degreein Geophysics from Novosibirsk State University. He has also MBA degree fromKellogg School of Management (Northwestern University). He is a member of theSociety of Petroleum Engineers. This information is provided by RNS The company news service from the London Stock Exchange