Volga Gas PLC PRODUCTION REPORT FOR AUGUST 2017 (7173P)

TIDMVGAS

RNS Number : 7173P

Volga Gas PLC

04 September 2017

4 September 2017

Volga Gas plc

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

PRODUCTION REPORT FOR AUGUST 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 August 2017.

In August 2017, average gas processing capacity utilisation increased slightly compared to July 2017 while test production continued using the new Redox gas sweetening process. During August 2017, the Dobrinskoye gas plant performed well, achieving a peak gas production level of 16.2 mmcfd, exclusively using the Redox based gas sweetening process.

In the coming months, implementation of the new process will continue with gradual increases in production. During this period it is expected that the average daily production of gas and condensate would be in the region of 3,600 boepd resulting in Group production of approximately 4,300 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 August 2017 was 2,698 barrels of oil equivalent per day (4% higher than July 2017).

Average production comprised:

 
              August 2017    July 2017      Jan-Aug 
                Average       Average         2017 
                                             Average 
 Gas:          9.0 mmcfd     8.9 mmcfd    21.1 mmcfd 
 Condensate     591 bpd       500 bpd      1,210 bpd 
 Oil            612 bpd       612 bpd       546 bpd 
 Total        2,698 boepd   2,593 boepd   5,280 boepd 
 

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 
                                               +7 (903) 385 
                                                9889 
 Andrey Zozulya, Chief Executive                +7 (905) 381 
  Officer                                       4377 
  Vadim Son, Chief Financial Officer            +44 (0) 7824 
  Tony Alves, Investor Relations Consultant     884 342 
 
                                               +44 (0) 20 
 S.P. Angel Corporate Finance LLP               3470 0470 
 Richard Redmayne, Richard Morrison, 
  Richard Hail 
 
                                               +44 (0) 20 
 FTI Consulting                                 3727 1000 
 Edward Westropp, Alex Beagley 
 

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. 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 company news service from the London Stock Exchange

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September 04, 2017 04:45 ET (08:45 GMT)