VGAS.L Regulatory News (VGAS)

 28 August 2012

VOLGA GAS PLC

Statement re. Russian media speculation

Volga Gas plc ("Volga Gas" or the "Company"), the oil and gas exploration and production group operating in the Volga Region of Russia, is making this announcement in response to press speculation in Russia.

The Company confirms that one of its group companies has received clearance from the Russian Federal Antimonopoly Service ("FAS") to purchase two Russian companies with oil exploration and production licences in the Khanty-Mansiysk region of Western Siberia. This clearance was sought as an initial part of a transaction process which is still under negotiation. There is at this stage no certainty a potential transaction will occur. Volga Gas will update shareholders on this potential transaction and provide further information as appropriate, in due course.

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