Volga Gas plc is providing the following update on the preliminary reserves estimates in its Vostochny Makarovskoye ("VM") and Dobrinskoye fields. The Company appointed Schlumberger Ltd. to conduct a comprehensive technical evaluation and reservoir study on the VM and Dobrinskoye fields. The study was completed recently and a re-calculation of remaining reserves in the fields is being carried out. While the results are yet to be finalised, preliminary results have been presented to the Board of Company. These results indicate total preliminary estimates of oil and gas Proved reserves for the Group as at 31 December 2019 are 9.1 mmboe, a downward revision of 8.3 mmboe, or 48%. This is made up of the preliminary estimates of Proved remaining reserves as at 31 December 2019 for the VM field of 2.9 million barrels of oil equivalent ("mmboe"), a downward revision of approximately 7.9 mmboe, or 73%. The preliminary Proved reserves for the Dobrinskoye field, as at 31 December 2019 are 0.4 mmboe, a downward revision of approximately 0.6 mmboe, or 60%. There are no material revisions to the oil reserves of the Group expected from the review. As announced on 6 January 2020, production from the VM and Dobrinskoye fields totalled 4,062 boepd in December 2019. Management currently expects this production rate to be maintained through 2020. The reserve revisions outlined above will lead to a material non-cash impairment charge on the carrying value of the VM and Dobrinskoye assets, as well as significantly increased unit non-cash depletion charges on production.