Old f4 May 2014 12:39
Greetings, as I thought vgas smashed it. IMO vgas will follow exi.FINANCIALHIGHLIGHTS
· Revenues up 22% to US$34.6 million (2012: US$28.3 million)
· EBITDA up 85% to US$14.8 million (2012: US$8.0 million)
· EBITDA per barrel of oil equivalent ("boe") up 26% to US$13.80/boe (2012: US$10.96/boe)
· Profit before tax of US$9.1 million (2012: loss of US$6.3 million)
· Net operating cash flow up 202% to US$15.4 million (2012: US$5.4 million)
· Bank debt fully repaid at 31 December 2013 (31 December 2012: bank debt of US$ 8.0 million).
· US$8.1 million in cash at 31 December 2013 (31 December 2012: US$7.0 million)
PRODUCTION & DEVELOPMENT
· Group average production up 48% to 2,958 boepd (2012: 1,995 boepd)
· Successful workover of well #1 on VM field during H1 2013 more than doubled the estimated productive capacity of that well to over 10 mmcf/d
· New production stream from the Sobolevskoye field from June 2013.
· After five years of production, output from the Uzenskoye field has been reduced pending future installation of water separation equipment
· Two new wells on the VM field VM#3 and VM#5 being drilled during 2014
DOBRINSKOYE GAS PLANT UPGRADE
· Key phases of the upgrade to the Dobrinskoye gas plant were completed in October 2013 and regulatory approval of the upgrade work was obtained in November 2013
· Since November 2013 the plant has been operating at a capacity of 500,000 cubic metres per day (approximately 17.7 mmcf/d)
· Continuing upgrade to expand capacity to 1 million cubic metres per day (35 mmcf/d) during 2014
CURRENT TRADING AND OUTLOOK
· During January and February 2014 production averaged 4,563 boepd, 54% above the full year 2013 average production rate
· Increases in oil and condensate selling prices have partly offset weakness of the Rouble against the US dollar
· With continued improvements in cost efficiency, unit EBITDA in US dollars per boe has been maintained at above the average rate for 2013
· Proposal to create distributable reserves to enable cash distributions to shareholders
Mikhail Ivanov, Chief Executive of Volga Gas, commented:
"2013 was a pivotal year for Volga Gas with a significant increase in production achieved in the final quarter of the year and sustained in the subsequent period. Completion of the current development drilling programme on VM in 2014 should enable additional production from our gas and condensate fields to maximise utilisation of anticipated gas processing capacity which we estimate would lift Group production to over 8,000 boepd. This will continue to drive growth in revenues and cash flow for Volga Gas and provide a basis for the Company to provide tangible financial returns to shareholders.
"We remain positive about the potential for growth, both in reserves and productio