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Volga Gas (VGAS:AIM) 360p

The company which, unsurprisingly, explores for oil and gas in the Volga region of Russia, has issued a positive announcement from its Vostochny Makarovskoye license. The VM-1 well was spudded at the end of September, targeting a pay zone 47 metres of gas in depth. Having drilled to a total depth of 2,402 metres, the firm actually encountered 100 metres of pay zone, and drilling is continuing. Broker KBC Peel Hunt is expecting a material upgrade in reserves when new estimates are disclosed later this year and has upgraded its valuation of the project to $420 million.