Volga Gas PLC PRODUCTION REPORT FOR APRIL 2019 (9433X)

TIDMVGAS

RNS Number : 9433X

Volga Gas PLC

03 May 2019

3 May 2019

Volga Gas plc

("Volga Gas", the "Company" or the "Group")

DRILLING UPDATE AND

PRODUCTION REPORT FOR APRIL 2019

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 April 2019.

Drilling Update

Drilling of Uzen 4 horizontal sidetrack into the shallower Albian reservoir commenced on 16(th) March and completed on 1(st) May. The total metres drilled in the sidetrack was 1,132 meters including a 407 meters horizontal section at vertical depth of 795 meters. Flow testing of the well is expected to commence after the activation of underground packers to cut off water flow from beneath the reservoir, which is expected to occur during May 2019.

Production Report

The average production in April 2019 was 4,905 barrels of oil equivalent per day (22.8% lower than March 2019). The decline in production was due to the gas plant being shut down for routine maintenance for 5 days during April. In addition, as a result of lower nominations from Gazprom, for the last four days of April 2019, gas processing capacity utilisation was reduced to 16.2 mmcfd and is expected to remain at the same level during May 2019.

During April 2019, as in March 2019, oil production was restricted by seasonal muddy road conditions to Uzen field.

Average production comprised:

 
              April 2019    March 2019    Jan-Apr 2019 
                Average       Average        Average 
 Gas:         17.6 mmcfd    22.8 mmcfd     21.3 mmcfd 
 Condensate    1,341 bpd     1,746 bpd     1,531 bpd 
 Oil            330 bpd       347 bpd       404 bpd 
 LPG            304 bpd       447 bpd       381 bpd 
 Total        4,905 boepd   6,332 boepd   5,859 boepd 
 

Management's expectation for 2019 for production to average 5,900 boe per day including LPG volumes remains unchanged.

Production data is based on preliminary monthly production reports prepared for the purposes of submissions to tax authorities for Mineral Extraction Tax purposes.

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 
                                                [phone] 
 Andrey Zozulya, Chief Executive Officer         [phone] 
  Vadim Son, Chief Financial Officer             [phone] 
  Tony Alves, Investor Relations Consultant      342 
 
                                                [phone] 
 S.P. Angel Corporate Finance LLP                0470 
 Richard Redmayne, Richard Morrison, Richard 
  Hail 
 
                                                [phone] 
 FTI Consulting                                  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 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 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 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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May 03, 2019 02:00 ET (06:00 GMT)