New US$10 million debt facility

27 March 2012

VOLGA GAS PLC

New US$10 million debt facility

Volga Gas plc ("Volga Gas" or the "Group"), the oil and gas exploration and production group operating in the Volga Region of Russia, is pleased to announce that it has signed a US$10 million multi-currency debt facility from ZAO Raiffeisen Bank. The funds are to be used to support the Group's capital expenditure programme in 2012. The facility has a term of two years and is an amortizing loan. The loan may be drawn in US dollars, Euros or Russian Roubles and the interest rates applicable are respectively US dollar LIBOR plus 6.5%, Euro LIBOR plus 5.4% or Mosprime plus 5.3%.

Mikhail Ivanov, Chief Executive of Volga Gas commented:

"We are delighted to have been able to raise this debt finance, the first such facility entered into by the Group, and acknowledge the support shown to the Group by Raiffeisen Bank."

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Editors' notes:

Volga Gas is an independent oil and gas exploration and production company operating in the Volga region of European Russia. The company has 100% interests in its five licence areas.