Vostok

completed

_x000C_Vostok Energy Limited (Vostok or the company) is a small independent oil and gas company operating in one of Russia’s frontier regions - Saratov oblast, close to the border with Kazakhstan. Its strategy is to grow into a sizeable upstream operator, focusing primarily on the development of natural gas properties. Currently, Vostok’s primary asset is the 3,215 km2 Bortovoe license block which is estimated to hold proved and probable reserves of approximately 370 billion cubic feet (bcf) of gas and 19 million barrels (mmbbls) of liquids, as certified by the independent international engineering firm Miller & Lents. The block is located in an industrialized region which is facing a gas supply deficit due to limited local output and insufficient deliveries by Gazprom, the dominant Russian gas producer and domestic supplier.Vostok is currently seeking financial support for its 2007-1Q2009 capital expenditure, which includes: - drilling of new wells; - selective re-entry of existing wells; - acquisition and processing of seismic information; and - construction and commissioning of a gas processing plant and other field infrastructure. The project is forecast to help increase Vostok’s daily gas production from minimal volumes in 2006 to 46 million cubic feet in 2009.