Volga Gas Plc provides an update on well Uzenskaya #3 in the southern sector of the Karpenskiy Licence Area.

Highlights - Well tested 2,000 bbl/day of 45 API oil in open hole testing - Well will be hooked up to existing facilities and brought on production in early 4Q

Well #3 was an exploration well targeting a Jurassic structure close to the Uzenskaya field which was discovered by Well#1. An interval between 989.5-1011.3 meters was tested. The well flowed at an equivalent of 353 cubic metres of light oil per day (~2,000 bbl/day) in drill stem test. Testing confirmed the horizon's excellent permeability. Management believes that the well will produce at not less than 375 bbl/day once brought in to production.

The well is currently being hooked in to the existing Uzenskaya facilities. It is expected that commercial production from this well will commence in a month.

Well Uzenskaya #4 has been spudded based on 3-D seismic and has been designed to confirm the extent of the field.

Mikhail Ivanov, Chief Executive of Volga Gas commented, "We are delighted with the new discovery. The well indicated good permeability and produced good quality oil. Uzenskaya #4 will provide us with further information on the extent of the field."

Tags: Volga Gas Plc