VGAS.L Regulatory News (VGAS)

6 Jul 2009 11:44



6 July 2009

VOLGA GAS PLC

("Volga Gas" or the "Company")

Result of General Meeting

Volga Gas, the independent oil and gas exploration and production company operating in the Volga region of European Russia, announces that at its General Meeting held earlier today, the Resolution relating to the Placing, as set out in the circular sent to shareholders on 19 June 2009, was duly passed.

The Company has raised US$27 million (£16.6 million) before expenses (approximately US$26.6 million/ £16.3 million net) through a placing of 27,000,000 Placing Shares in the capital of the Company with certain existing investors including certain directors and management of the Company at a price of US$1.00 or 61.4 pence per share. 

Admission of the Placing Shares is expected to take place and dealings are expected to commence on the AIM market of the London Stock Exchange at 8.00am on 7 July 2009. 

Mikhail Ivanov, Chief Executive of Volga Gas, commented:

"I am delighted that our shareholders have supported us through this fund raising process. We will now be able to bring forward the drilling of the eagerly awaited and potentially high impact sub-salt exploration well, Grafovskaya # 1, on the Yuzhny Ershovskoye prospect in the Karpenskiy licence area, which was one of the key motivations for the formation of the Company. A drilling rig is assembled on location, and we shall instruct the contractor and other service providers to commence drilling at the earliest opportunity."

Terms defined in the announcement issued by the Company on 18 June 2009 with RNS number 1027U have the same meaning in this announcement.

- Ends -

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