Baring Vostok may float Volga Gas

Baring Vostok, the Russian buyout firm that recently closed a $1 billion fund, is reportedly planning to list portfolio company Volga Gas on London’s Alternative Investment Market at the end of April.

Russian private equity firm Baring Vostok is reportedly planning to float Volga Gas, a Russian energy exploration and production company, on London’s Alternative Investment Market later this month.

The Financial Times reports that the gas company could raise about $100 million (€74 million) by listing around 30 percent of its shares towards the end of April.

Volga has three licensed areas in the Volga region of Russia, the smallest of which, Vostochnyy-Markaryevskoye, is said to have reserves of 7.2 billion cubic metres of gas. Pumping could begin in this area by the end of 2008.

The company is also licensed for the Karpuninskiy area which is estimated to have 34.5 billion cubic metres of gas based on the exploratory wells that have been drilled there. The funds raised from the flotation will reportedly be channelled into the infrastructure necessary to bring the smaller field into production.

Baring Vostok recently raised the largest ever Russian fund at $1 billion. The buyout firm also floated Burren Energy in London in 2003, raising £40 million ($79 million, €59 million).