Licence Amendment

28 Feb 2008 07:00

Volga Gas PLC28 February 2008 28 February, 2008 VOLGA GAS PLC Licence Amendment - Karpenskiy Licence Area Volga Gas (the "Company") is pleased to announce that it has successfullyamended the terms of its Karpenskiy licence with the Federal Agency for NaturalResources. As was referred to in the Company's Admission Document dated 20 April 2008, theCompany inherited certain licence breaches when it acquired the Karpenskiylicence from a LUKoil subsidiary and at that time stated that it was in theprocess of preparing an application to have the licence amended. This has nowoccurred as anticipated and under the terms of its amended licence agreement theCompany is required to finalize the acquisition of 400 km2 of 3-D seismic anddrill nine exploration and/or production wells over the next two years. Theseamended terms are inline with the Company's current work programme. With the acquisition of 140km2 over a number of supra-salt structures in thesouth of the Karpenskiy licence area, the Company has fulfilled its requirementsto acquire 3-D seismic under the terms of the licence. The Company expects thatits forthcoming sub and supra-salt drilling programme will fully-satisfy itsdrilling requirements. Mikhail Ivanov, Chief Executive of Volga Gas commented: "Notwithstanding our recent successes on Vostochny-Makarovskoye, the sub-saltstructures on the Karpenskiy Licence Area contain substantial potential upside.Resolving these historical breaches allows us to complete the exploration of theKarpenskiy Licence Area with confidence. In each of our four licence areas theCompany is now in line with, or ahead of its licence obligations." - Ends - Volga Gas is an independent gas exploration and production company, whichcurrently holds four subsoil licenses in the Volga Region of European Russia For additional information please contact: +--------------------------------+-----------+---------------------------+|Financial Dynamics | | || | | || | | |+--------------------------------+-----------+---------------------------+|Jonathon Brill | |+44 (0)20 7269 7170 || | | ||Billy Clegg | |+44 (0)20 7269 7157 || | | ||Alex Beagley | |+44 (0)20 7269 7207 |+--------------------------------+-----------+---------------------------+| | | || | | || | | |+--------------------------------+-----------+---------------------------+|KBC Peel Hunt (Nominated | |+44 (0)20 7418 8900 ||Adviser) | | || | | |+--------------------------------+-----------+---------------------------+|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