VGAS.L Share News (VGAS)

Volga Gas, the oil and gas exploration and production group operating in the Volga Region of Russia, saw profits in the six months to 30 June soar after a sharp increase in production.Pre-tax profits rose to $3.1m from $176,000 over the same period the previous year on revenues that climbed to $14m from $5.2m.Average production increased to 2,092 barrels of oil equivalent per day from 920 over the same period the previous year. Average realizations for the period rose to US$46.02 a barrel from $30.12 previously."We have maintained continued steady production from our Uzen oil field and have a material first contribution to revenues from the Dobrinskoye gas and condensate field, which has to date performed in excess of our expectations at the time of the acquisition," the company said."For the remainder of 2011, production is expected to average above 2,600 boepd."---RG