3 Aug 2017 07:00
3 August 2017
Volga Gas plc
("Volga Gas", the "Company" or the "Group")
PRODUCTION REPORT FOR JULY 2017
Volga Gas plc, the oil and gas exploration and production group operating in the Volga Region of Russia, is pleased to announce its average production volumes for July 2017.
In July 2017, average gas processing capacity utilisation increased slightly compared to June 2017 while test production continued using the new Redox gas sweetening process. During July 2017, the Dobrinskoye gas plant worked successfully and exclusively using the Redox based gas sweetening process.
In the coming months implementation of the new process will continue with gradual increases in production. With the new process, it is expected that more downtime will be necessary so that the average daily production of gas and condensate over a normal month would be in the region of 6,300 boepd resulting in Group production of approximately 7,000 boe per day, excluding additional potential production from the Uzen well #101 and incremental volumes from the LPG project which is currently under construction.
The average production in July 2017 was 2,593 barrels of oil equivalent per day (c.11% higher than June 2017).
Average production comprised:
| July 2017 Average | Jun 2017 Average (revised) | Jan-Jul 2017 Average |
Gas: | 8.9 mmcfd | 7.5 mmcfd | 22.9 mmcfd |
Condensate | 500 bpd | 483 bpd | 1,301 bpd |
Oil | 612 bpd | 597 bpd | 537 bpd |
Total | 2,593 boepd | 2,334 boepd | 5,658 boepd |
Production data is based on preliminary monthly production reports prepared for the purposes of submissions to tax authorities for Mineral Extraction Tax purposes. The gas production number for June 2017 has been revised upwards from 7.0 mmcf/d, as stated in the Production Statement issued on 4 July 2017, to 7.5 mmcf/d, in line with the final official submissions. Oil and condensate volumes are unchanged. The total production number for June 2017 is consequently revised from 2,246 to 2,334 boepd.
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 |
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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 |
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S.P. Angel Corporate Finance LLP | +44 (0) 20 3470 0470 |
Richard Redmayne, Richard Morrison, Richard Hail |
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FTI Consulting | +44 (0) 20 3727 1000 |
Edward Westropp, Alex Beagley |
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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 July 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 metres (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. 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