Update On Well #101 Drilling

2 August 2017

Volga Gas plc

("Volga Gas", the "Company" or the "Group")

UPDATE ON WELL #101 DRILLING

Volga Gas plc, the oil and gas exploration and production group operating in the Volga Region of Russia, is pleased to provide the following update on the drilling of its Uzen #101 horizontal oil production well in the Uzen field.

As recently announced on 10 July 2017, the horizontal well #101 in the Company's Uzen oil field commenced drilling on 27 April 2017.

Drilling operations were concluded as anticipated on 28 July 2017 having completed a horizontal section of total length of 627 metres. Logging while drilling indicated a total productive zone in the well of 506 metres, exhibiting average porosity of 32% and oil saturation of 68%. The horizontal section of the well has been lined and the productive zones have had water-swell packers installed to maximise the well stability. After the packers have become water swelled - within the next 30 days - production testing of the well will commence.

Prior to drilling, the 2P reserves estimated within the Albian reservoir of the Uzen field were approximately 1.9 million barrels. Following the test results, the production potential of the well can be determined.

Further announcements will be made on this well upon completion of the production test.

Andrey Zozulya, Chief Executive of Volga Gas commented:

"I am pleased to have completed the drilling of the #101 horizontal well on Uzen within the estimated timeframe. This well is one of a number of projects being undertaken by management to maximise the potential of the Group's assets."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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Editors' notes:

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

The information contained in this announcement has been reviewed and verified by Mr. Andrey Zozulya, 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. Andrey Zozulya holds a degree in Geophysics and Engineering from the Groznensky Oil & Gas Institute and is a member of the Society of Petroleum Engineers.

Glossary

bbl Barrel

bopd Barrels of oil per day

bpd Barrels per day

boepd Barrels of oil equivalent per day, in which 6,000 cubic feet of natural gas is equated to one barrel of oil

mcf thousand cubic feet

mmcfd Millions of standard cubic feet per day