Vega Resources seeking strategic partner to develop Rostov licences

Thursday, Jan 22, 2009

Vega Resources As / Rostneftegaz Geo (RNGG) have decided to search for a strategic partner to develop its Rostov licences. A strategic sale of the Company and assets to another oil & gas company or investor will also be considered. Talks are underway with a number of serious international players. The licences in the Rostov region are located in an area that is surrounded by oil producing fields, but has not previously been drilled in. Two of the licences border on the river Don and the area has a very well developed network of oil and gas pipelines. The three licences are situated in the Karpinsky Ridge. The total acreage of the licences awarded in January 2006 is 4000 sq km. The drilling commitment is for three deep wells.

Vega Resources AS / Rostneftegaz Geo (RNGG) have completed 460 km of new 2D data acquisition in the 3 Rostov licences. The data has been acquired by a land crew from Zapprikaspigeofizika-Volgograd. The data will be processed in Moscow by Sevmorneftegeofizika (SMNG), in cooperation with the Rostov Geological and Geophysical Expedition (RGGE). Geotrace, Russia will interprete and remap all Vega Resources / Rostneftegaz Geo seismic data. Final updated structural maps will be available in January 2009. The Rostneftegaz Geo (RNGG) total seismic data base comprises approx. 1250 km. 880 km of these data are new data acquired in 2007 / 2008.

The companies have submitted a report to the Ministry of Natural Resources ( MNR) with the preliminary recommendations for 3 drilling locations.The drilling of the 1st well is scheduled to take place late 2009, on one of several well defined large structures. Based on the results of the final remapping of the data, the recommended well locations may be slightly adjusted. Due to structural complexity;Vega Resources AS / Rostneftegaz Geo (RNGG) may decide to acquire 3D seismic data prior to drilling.