VGAS.L Share News (VGAS)

LONDON (Alliance News) - Volga Gas PLC said on Wednesday average gas processing capacity utilisation increased by 31% in March compared to February, while test production continued using exclusively the new Redox gas sweetening process.

On Wednesday shares in Volga Gas, which focuses on the Volga region in Russia, were trading 1.6% lower at 54.10 pence each.

Average production in March 2018 was 4,184 barrels of oil equivalent per day, an increase of 7% compared to February.

Construction of its liquid petroleum gas project is near completion and pressure testing is currently on-going as part of the commissioning process. The facility should be completed and in production during the second quarter of 2018, Volga said.

"In the coming months, implementation of the Redox gas sweetening process will continue. We are also currently experiencing higher water production rates at Vostocny Makarovskoye and are investigating this.

"For prudent reservoir management and production guidance purposes during this period our revised average daily production of gas and condensate will remain in the region of 3,800boepd resulting in group production of approximately 4,500boe per day. This excludes incremental volumes from the LPG project once the LPG facility is fully commissioned", the company said.