Volga Gas Acquires Yuzhny-Ershovskoye Seismic

Volga Gas Plc on Thursday announced the completion of the acquisition of 3-D seismic on the Yuzhny-Ershovskoye structure in the Karpenskiy License Area ('KLA').

The data acquired is of very good quality and will be processed and interpreted by Schlumberger, from which the well location will be derived for the drilling of the first of two deep sub-salt appraisal/exploration wells as set out in the Company's Admission document. It is expected that deep sub-salt well will be spudded in 1Q 2008.

The Saratovneftegeophysika seismic party now moves to the Yuzhny-Mokrousovskoye structure where it will acquire 160 sq kms of 3D seismic; the purpose of this 3-D seismic is to identify the location of the second deep sub-salt well.

The Company expects to announce revisions to its resources on the Yuzhny-Ershovskoye structure and include the newly identified resources on the Yuzhny Mokrousovskoye in 1Q 2008.

Both structures are on the Karpenskiy license area, which covers approximately 4,180km and is situated on the northern edge of the North Caspian Basin in the Saratov region.

Mikhail Ivanov, Chief Executive of Volga Gas commented:

"The seismic data on both Yuzhny-Ershovskoye and Yuzhny-Mokrousovskoye will assist in identifying the optimum locations to drill two deep sub-salt wells on the KLA and to update our resource base. The completion of the 3-D seismic demonstrates that the Company is executing on its operation plan which we laid out at the time of our IPO."

Volga Gas Plc is an independent gas exploration and production company that holds three subsoil licenses in the Volga Region of European Russia,