Volga Gas PLC PRODUCTION REPORT FOR JUNE 2020 (9056R)

TIDMVGAS

RNS Number : 9056R

Volga Gas PLC

03 July 2020

3 July 2020

Volga Gas plc

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

   PRODUCTION REPORT FOR JUNE   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 June 20 20 .

Production Report

The average production in June 20 20 was 3 , 248 barrels of oil equivalent per day ( 4 % lowe r than May 2020). This decline was attributable to the gas plant working at lower capacity for 7 days due to planned maintenance on Gazprom's facilities.

Average production comprised:

 
               June 2 020      M ay 2 020     Jan-June 2020 
                 Average         Average         Average 
 Gas:           6.7 mmcfd       7.9 mmcfd       8.8 mmcfd 
 Condensate     1,560 bpd       1,343 bpd      1, 437 bpd 
 Oil             459 bpd         565 bpd         493 bpd 
 LPG             106 bpd         146 bpd         188 bpd 
 Total        3 , 248 boepd   3 , 372 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 30 June 2020, the Group held cash balances of US$1 0 . 6 million, and has no debt.

Pricing update

International oil pricing has been recovering during the month positively affecting domestic pricing for oil and condensate. In addition, LPG price rose significantly as a result of seasonal increases in demand. Average pricing was:

 
   Pricing ex VAT, USD      June 2020   May 2020    Jan-June 
                             Average     Average      2020 
                                                     Average 
 Exchange Rate (RUR/USD)     69.2239    7 2 .6187   6 9.3714 
 Gas price per mcf            1.85        1.78        1.86 
 Condensate price per 
  bbl                         26.49       14.20      26.77 
 Oil price per bbl            32.03       20.66      30.77 
 LPG price per bbl            30.26       14.90      23.28 
 

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 Morrison, Richard Hail, Soltan Tagiev 
 
                                                  [phone] 
 FTI Consulting                                    1000 
 A lex 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 

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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July 03, 2020 02:00 ET (06:00 GMT)