Volga Gas plc

INTERIM RESULTS

SEPTEMBER 2015

Andrey Zozulya, CEO

Tony Alves, CFO

This presentation is for information only and does not constitute an offer or invitation for the sale or purchase of

securities. Any information or documentation provided as part of the presentation is intended solely for use

during the presentation and as a personal record thereafter. Any information or documentation provided as part

of the presentation may not be reproduced or circulated or used for any other purpose.

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directly or indirectly, in or into the United States of America, its territories or possessions or passed to US

Persons (as defined in Regulation S of the United States Securities Act of 1933 (as amended)), United States

residents, corporations or other entities, save pursuant to an applicable exemption. Distribution of this

information in the United States may constitute a violation of Unites States securities law.

Certain forward-looking statements may be contained in the Presentation Materials. Although the Company

believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can

be given that such expectations will prove to be accurate. Accordingly, results could differ from those projected

as a result of, among other factors, changes in economic and market conditions, changes in the regulatory

environment and other business and operational risks.

The information provided during the presentation has not been independently verified. No representation or

warranty, express or implied, is given as to the accuracy, fairness or completeness of the information or

opinions contained in the presentation and no liability is accepted for any such information or opinions (which

should not be relied upon) or for any loss howsoever arising, directly or indirectly, from any use of the

information provided.

Disclaimer

1

Where we operate

Source: Incotec

Source: Incotec

Urozhainoye-2

Dobrinskoye

Dobrinskoye

2

Business overview

Production

Gas & condensate production in two fields: Vostochny Makarovskoye and Dobrinskoye

Oil production from one field: Uzenskoye

H1 2015 average production: 2,624 boe/d (H1 2014: 4,419 boe/d)

Significant disruption to regional market for condensate impacted sales/production volumes

Gas Processing Plant

Continues to operate consistently at 500 mcm/d (17.7 mmcf/d) subject to regional market conditions

Effective available capacity is 750 - 1,000 mmcm/d (26.3 - 35.3 mmcf/d)

Field development

Drilling to bring two new wells (VM#3 and VM#4) on stream at VM

Positive results from development wells VM#4 tested at high flow rates (> 300 mcm/d)

VM#3 exhibits good reservoir section and good production rates expected

These wells conclude development drilling for the field

Strategy

Priority will be to focus on completing development and achieving higher levels of production and cash generation

Staged Amine/LPG project at the gas plant to enhance future revenues from the gas stream

Future exploration potential in the Karpenskiy licence area

* Management estimate as at 31 December 2014. Source – as per Miller & Lents reserve report of 1 August 2012, less subsequent production

3

Financial highlights of H1 2015

Revenue US$7.9 million (H1 2014: US$23.2 million) Reduced production and sales because of market disruption during H1 2015

Lower oil prices and RUR devaluation impact on US$ reported gas price

EBITDA negative US$0.3 million (H1 2014: +US$11.2 million) Mineral Extraction Taxes equal to 39% of revenues (H1 2014: 21%)

Operational gearing of fixed costs on lower sales volumes

Pre-tax loss of US$1.6 million (H1 2014: profit of US$8.1 million) Exceptional expense of US$0.4 million relating to fraudulent transfer of group funds. The majority of the funds

transferred have been recovered or are expected to be recovered shortly. The expense relates to amounts

that management believes may not be recovered.

Net cash flow from operations of negative US$1.0 million (H1 2014: +US$11.0 million) Cash generation reflecting EBITDA but with working capital outflow

Net cash US$11.5 million at 30 June 2015 (31 Dec 2014: US$15.8 million) Cash used in capital expenditure decreased to $2.1 million (H1 2014: US$2.5 million)

After payment of final dividend of US$1.0 million in June 2014 in respect of 2014

Full year 2015 capital expenditure expected to be US$10-11 million Completion of development drilling on VM field

4

Vostochny–Makarovskoye gas/condensate field

2P reserves* of 126 bcf of gas and 7.5 million barrels of condensate (28.4 mmboe)

Three production wells drilled, completed and hooked up to the Dobrinskoye gas plant, 5 km

from the field site

Successful sidetrack of VM#4 well estimated to add productive capacity of over 2,300 boe/d

Well to be on stream during October 2015

New VM#3 well completed and >100 metres of pay logged

Currently being tested before hook-up by end of 2015

Current drilling completes the field development

Current well stock estimated to deliver > 1.0 mmcm/d (35.3 mmcf/d) of gas to fill the gas plant Sufficient to access all reserves in the field Initial plan to raise throughput to 750 mcm/d (26.5 mmcf/d), subject to condensate market conditions

VM field site office VM#1 well workover in operation VM#1 wellhead and flow line

5

* Management estimate as at 31 December 2014. Source – as per Miller & Lents reserve report of 1 August 2012, less subsequent production

Dobrinskoye gas plant

Gas Processing Unit used to process gas from the VM and Dobrinskoye fields

Originally constructed solely for the Dobrinskoye field, the GPU has been upgraded to process the

gas from VM and to increase its throughput capacity

Remaining works to establish 35 mmcf/d physical capacity, increase in condensate storage and

upgrade to safety flare systems. These works have been completed.

Current logistics for handling chemicals and waste products likely to constrain throughput to 750 mcm/d (26.5 mmcf/d)

Further development of the plant planned in two stages:

1. Installation of Amine-based sweetening => Reduction of costs and allows full capacity utilisation

2. Second stage LPG (propane/butane) extraction project currently under evaluation for 2017 development

6

Oil production from shallow supra-salt fields

UZENSKOYE FIELD

2P reserves* of 4.2 mmbbls

Produced over 2 million barrels to date

Current production capacity 400 bopd

Production currently choked back to prevent water cut

Secondary reservoir planned to be developed in 2016

7

* Management estimate as at 31 December 2014. Source – as per Miller & Lents reserve report of 1 August 2012, less subsequent production

Exploration: Karpenskiy Licence

YUZHNY ERSHOVSKOYE

• Grafovskaya#1 sub-salt

exploration well drilled and

tested.

• Non-commercial

hydrocarbon shows

YUZHNY MOKROUSOVSKOYE

• Novaya supra- and intra-salt

prospect.

• C3 Prospective

Resources of 189 mmboe

UZENSKOYE

• Discovered in 2007/8

• Developed 2008/9

• Produced > 2 mmbbls

Source: Wood Mackenzie

SOBOLEVSKOYE

• Single well produced

in 2013-2014

• Sidetrack to develop

additional undepleted

pool.

MIRONOVSKAYA

• 3 supra-salt prospects

mapped.

• Total C3 Prospective

Resources of 25 mmbbls.

8

Monthly average production rates Jan 2014 – Aug 2015 (boepd)

9

0

1000

2000

3000

4000

5000

6000

Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15

VM/Dob Gas

VM/Dobrinskoye condensate

Uzen/Sobol Oil

Monthly revenues and cash margins ($k, Jan 2013 – Aug 2015)

Monthly revenue by product (US$ 000) Monthly revenue and cash margins (US$ 000)

10

0

1000

2000

3000

4000

5000

6000

Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15

Gas

Condensate

Oil

-1000

0

1000

2000

3000

4000

5000

6000

Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15

MET

Production Costs

Cash Margin (before G&A)

Summary and Outlook

Upstream development of VM gas field is effectively completed

New wells (VM#3, VM#4) expected to enable 100% increase in production capacity

Short term planning 50% in field output (effective operational capacity of gas plant is 750 mcm/d – 26.5 mmcf/d)

Disruption to regional market for condensate has impacted sales/production volumes and remains a risk

Gas Processing Plant

Effective available capacity is 750 - 1,000 mmcm/d (26.3 - 35.3 mmcf/d)

Aim to upgrade to amine-based sweetening

Enable significant cost savings and full 35.3 mmcf/d capacity utilisation

=> improved revenue and profitability

Longer term plan to install LPG capture => further significant increase in revenues and in profit margin expected

Finance

Strong position at start of 2015 enabled Volga Gas to complete development and remain net cash positive

Well placed to benefit from recovery in oil prices/Russian Rouble

Plan to raise moderate levels of debt to fund incremental capex on gas plant upgrade

Current trading and outlook

Production during July/August averaged 3,474 boepd, current run rate ~4,300 boepd

Anticipate > 6,000 boepd when the two new VM wells come on stream (4Q 2015 – 1Q 2016)

Financial performance in US$ driven by oil prices, RUR rates and Mineral Extraction Taxes

Operating costs and G&A primarily RUR denominated

Future oil exploration and development potential in the Karpenskiy licence area

11

Key share data

Debt – $nil as at 30 June 2015

Cash – $11.5 million as at 30 June 2015

VGAS share price, UK p

12 month min 55p | max 118p | at 21/09/15 55p

Shares in issue: 81,017,800

Market capitalisation: £45m

www.volgagas.com

VGAS share price chart

Source: London Stock Exchange

Major shareholders (as disclosed)

Baring Vostok Private Equity Funds III & IV 58.66%

Quorum Funds 5.98%

Nicholas Mathys 5.55%

BNP Paribas Investment Partners 4.12%

Blackrock Investment Management 3.81%

JP Morgan Asset Management 3.41%

Management/Directors 2.10%

12

13

Glossary and technical information

GLOSSARY

bbl barrel

bopd barrels of oil per day

bpd barrels per day

boepd or boe/d barrels of oil equivalent per day, in which 6,000 cubic feet of natural gas is

equated to one barrel of oil

LPG liquid petroleum gases

mcm/d thousands of cubic metres per day

mmcf/d millions of standard cubic feet per day

OIL, GAS AND CONDENSATE RESERVES There has been no external reassessment of reserves subsequent to the Miller and Lents reserve study of 2012.

The reserves and production numbers herein exclude all volumes related to the Sobolevskoye field which was not included in

the Miller and Lents reserve study of 2012. The numbers for Sobolevskoye are estimated by management not to be material

in the context of Group reserves.

The above reserve estimates, prepared in accordance with reserve definitions prepared by the Oil and Gas Reserves

Committee of the SPE, have been reviewed and verified by Mr. Mikhail Ivanov, Chairman 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.