VGAS.L Regulatory News (VGAS)

21 Jun 2007 07:01

Volga Gas PLC21 June 2007 21 June, 2007 VOLGA GAS PLC SEISMIC ACQUISITION 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 the completion of the acquisition of 3-Dseismic on the Yuzhny-Ershovskoye structure in the Karpenskiy License Area('KLA'). The data acquired is of very good quality and will be processed andinterpreted by Schlumberger, from which the well location will be derived forthe drilling of the first of two deep sub-salt appraisal/exploration wells asset out in the Company's Admission document. It is expected that deep sub-saltwell will be spudded in 1Q 2008. The Saratovneftegeophysika seismic party now moves to the Yuzhny-Mokrousovskoyestructure where it will acquire 160 sq kms of 3D seismic; the purpose of this3-D seismic is to identify the location of the second deep sub-salt well. The Company expects to announce revisions to its resources on theYuzhny-Ershovskoye structure and include the newly-identified resources on theYuzhny Mokrousovskoye in 1Q 2008. Both structures are on the Karpenskiy license area which covers approximately4,180km and is situated on the northern edge of the North Caspian Basin in theSaratov region. Mikhail Ivanov, Chief Executive of Volga Gas commented: "The seismic data on both Yuzhny-Ershovskoye and Yuzhny-Mokrousovskoye willassist in identifying the optimum locations to drill two deep sub-salt wells onthe KLA and to update our resource base. The completion of the 3-D seismicdemonstrates that the Company is executing on its operation plan which we laidout at the time of our IPO" - ends - For additional information please contact: Financial DynamicsJonathon Brill +44 (0)20 7269 7170Billy Clegg +44 (0)20 7269 7157Ekaterina Alferova +44 (0)20 7269 7257 KBC Peel Hunt (Nominated Adviser) +44 (0)20 7418 8900Jonathan MarrenAlina Savych This information is provided by RNS The company news service from the London Stock Exchange