7 Aug 2020 07:00
7 August 2020
Volga Gas plc
("Volga Gas", the "Company" or the "Group")
PRODUCTION & DRILLING UPDATE REPORT FOR JULY 2020
Volga Gas plc, the oil and gas exploration and production group operating in the Volga Region of Russia, is pleased to provide the following update on its average production volumes for July 2020.
Production Report
The average production in July 2020 was 3,590 barrels of oil equivalent per day (10.5% higher than June 2020). This increase was driven by improved availability of gas plant capacity. In the prior month production was suspended for 7 days due to planned maintenance on Gazprom's facilities.
Average production comprised:
July 2020 Average | June 2020 Average | Jan-July 2020 Average | |
Gas: | 7.6 mmcfd | 6.7 mmcfd | 8.7 mmcfd |
Condensate | 1,786 bpd | 1,560bpd | 1,488 bpd |
Oil | 416 bpd | 459 bpd | 482 bpd |
LPG | 113 bpd | 106 bpd | 177 bpd |
Total | 3,590 boepd | 3,248 boepd | 3,593 boepd |
Production data is based preliminary on monthly production reports prepared for submissions to the tax authorities for Mineral Extraction Tax purposes. Final monthly production reports may vary marginally from preliminary monthly production reports.
As at 31 July 2020, the Group held cash balances of US$10.0 million, and has no debt.
Pricing update
International oil pricing has been slightly recovering during the month positively affecting domestic pricing for oil and condensate. In addition, LPG price continued to grow as a result of seasonal increases in demand. Average pricing was:
Pricing ex VAT, USD | July 2020 Average | June 2020 Average | Jan-July 2020 Average |
Exchange Rate (RUR/USD) | 71.2853 | 69.2239 | 69.6500 |
Gas price per mcf | 1.81 | 1.85 | 1.86 |
Condensate price per bbl | 25.95 | 26.49 | 26.65 |
Oil price per bbl | 34.70 | 32.03 | 31.18 |
LPG price per bbl | 36.70 | 30.26 | 24.49 |
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
For further information, please contact:
Volga Gas plc | |
Andrey Zozulya, Chief Executive Officer Vadim Son, Chief Financial Officer Tony Alves, Investor Relations Consultant | +7 (903) 385 9889 +7 (905) 381 4377 +44 (0) 7824 884 342 |
S.P. Angel Corporate Finance LLP | +44 (0) 20 3470 0470 |
Richard Morrison, Richard Hail, Soltan Tagiev | |
FTI Consulting | +44 (0) 20 3727 1000 |
Alex Beagley, Fern Duncan |
Notes
The information contained in this announcement has been reviewed and verified by Mr. Andrey Zozulya, Chief Executive Officer of Volga Gas plc, for the purposes of the Guidance Note for Mining, Oil and Gas companies issued by the London Stock Exchange in June 2009. Mr. Andrey Zozulya holds a degree in Geophysics and Engineering from the Groznensky Oil & Gas Institute and is a member of the Society of Petroleum Engineers.
The Company records production in metric tonnes (for oil and condensate) and in cubic meters (for gas). Conversions from metric to standard oil field units are used for illustrative purposes only and are based on the Company's estimate of the applicable ratios. The ratios used are 7.833 barrels per tonne for oil and 8.75 barrels per tonne for condensate and 11.735 barrels per tonne for LPG. Gas volumes are translated using 35.3 cubic feet per cubic meter and 6,000 cubic feet per barrel of oil equivalent.
Glossary
bpd Barrels per day
boepd Barrels of oil equivalent per day
mmcfd Millions of standard cubic feet per day