Volga Resources to acquire stake in Geotech Oil Services

Volga Resources to acquire stake in Geotech Oil Services

Volga Resources SICAV-SIF S.A. ("Volga"), the Luxembourg-based investment fund, announces that it has agreed to acquire, for an undisclosed sum, a stake of 25% in the share capital of Geotech Oil Services Holding Limited ("Geotech"), the leading onshore seismic provider in Russia and the CIS. The stake is being bought directly from Black River Asset Management, Farallon Capital Management, Geotech's senior management and also through the subscription to a new share issue.

Completion is expected within the first half of this year. Thereafter Geotech will have a strong shareholder base consisting of Farallon Capital Management, Pinebridge Russia Century Partners, L.P. (formerly AIG Russia Century Fund) and Volga Resources and management, who are committed to support the development of the Company as a market leader in Russia and the CIS.

Commenting on the acquisition, Chlodwig Reuter, Chairman of Volga Resources said: "This acquisition builds on our existing presence within the oil and gas sector and on our longstanding experience of the industry and its supply chain. Geotech has a long history in Russia and the CIS of being a well managed participant in the field of seismic data. We are excited about its growth and expansion potential."

Volga Resources' financial adviser for the transaction was Credit Suisse and legal adviser was Latham & Watkins.