Operational Update - Mirnaya Exploration Well

19 November 2012

VOLGA GAS PLC

Operational update - Mirnaya exploration well

Volga Gas plc ("Volga Gas" or the "Company"), the oil and gas exploration and production group operating in the Volga Region of Russia, announces that drilling operations on the Mirnaya#2 exploration well in the Groups' Pre-Caspian licence area are close to completion. No hydrocarbons were identified in the potential target Jurassic and Triassic layers. On conclusion of the operations the well will be plugged and abandoned.

Mikhail Ivanov, Chief Executive of Volga Gas, commented:

"While it is disappointing not to have a success with Mirnaya #2, this was a relatively low cost well on a potentially material prospect."

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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.

The information contained in this announcement has been reviewed and verified by Mr. Mikhail Ivanov, Director and Chief Executive Officer of Volga Gas plc, for the purposes of the Guidance Note for Mining, Oil and Gas companies issued by the London Stock Exchange in June 2009. Mr. Mikhail Ivanov holds a M.S. Degree in Geophysics from Novosibirsk State University. He also has an MBA degree from Kellogg School of Management (Northwestern University). He is a member of the Society of Petroleum Engineers.