First oil production delivered ahead of schedule

Volga Gas Plc, the independent gas exploration and production company, which currently holds four subsoil licences in the Volga region of European Russia, today announces that oil production has commenced from Uzenskaya £1 and first revenues have been received. The Company has structured an agreement to sell all its oil production at its surface facilities located on the Uzenskaya field at RUR7,550/tonne (approx $42/bbl). As the production is sold locally the Company does not need to pay export taxes, which are currently approximately $35/bbl.