(Alliance News) - Volga Gas PLC on Monday said its average daily production from Russian assets was lower in July compared to the prior month.
The exploration and production company said average output of gas, oil and condensate in July totalled 4,885 barrels of oil equivalent daily, down 21% from 6,190 barrels in June.
The company explained that the decrease in production was due to the gas plant being shut down for routine maintenance for three days during June. In addition, Volga Gas said there was a reduction in output from the Vostochno-Makarovskoye gas field in response to the recently observed higher water cut.
Gas production and condensate output were 23% and 18% lower at 16.6 million cubic feet per day and 1,480 barrels per day, respectively, while oil output fell by 16% to 359 barrels per day in June.
Looking ahead, Volga Gas said its current expectation for production for the remainder of 2019 is an average of 2,830 barrels of oil equivalent per day, leading to an average of 4,400 barrels of oil equivalent per day for 2019 as a whole.
Turning to operations, Volga Gas said drilling of Uzen 4 horizontal sidetrack, located in Kazakhstan, into the shallower Albian reservoir commenced in mid-March and completed in June. The total of 1,132 metres were drilled.
Extensive well testing under a variety of regimes resulted in gas production at 1.8 million cubic feet per day of dry gas with 39 barrels a day of oil, which is below expectations.
Separately, a slim hole drilling project was initiated in June to drill six Uzen wells in Albian reservoir, Volga Gas said. To-date two test wells have been successfully drilled.
The production rates are still to be tested and the companys' expectation is for production of about 35 barrels per day per well.
Volga Gas shares were trading 18% lower on Monday in London at 40.00 pence each.