Volga Gas PLC PRODUCTION REPORT FOR SEPTEMBER 2018 (0404D)

TIDMVGAS

RNS Number : 0404D

Volga Gas PLC

05 October 2018

5 October 2018

Volga Gas plc

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

PRODUCTION REPORT FOR SEPTEMBER 2018

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 September 2018.

In September 2018, average gas processing capacity utilisation decreased by 19% compared to August 2018 as the Gazprom pipeline maintenance programme, which started in July, resumed in September after a break in August. The decrease in oil production by 27% compared to the prior month was driven by the workover operations on the Uzen 6bis well. Production from this well is expected to resume imminently.

The average production in September 2018 was 4,988 barrels of oil equivalent per day (16% lower than August 2018).

Average production comprised:

 
              September 2018    August 2018     Jan-Sep 2018 
                  Average         Average          Average 
 Gas:           18.8 mmcfd      22.4 mmcfd      17.6 mmcfd 
 Condensate     1,138 bpd      1,361 bpd1361     1,133 bpd 
 Oil             360 bpd          495 bpd         638 bpd 
 LPG             360 bpd          339 bpd         157 bpd 
 Total         4,988 boepd      5,921 boepd     4,867 boepd 
 

Actual production is in line with management expectations of production at average level of approximately 4,500 boe per day for the year ending 31 December 2018. This excludes incremental volumes from the LPG project, which are expected to add a further 400 boepd once the LPG facility is fully tuned.

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 condensate production numbers for August 2018, as announced on 6 September 2018, have been revised upwards from 1,357 bpd to 1,361 bpd in line with the final official submissions. Gas, Oil and LPG volumes are unchanged. The total production number for August 2018 is consequently revised from 5,916 to 5,921 boepd. LPG year-to-date average was adjusted to average from January-to-date rather than from May-to-date when actual LPG production was launched.

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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October 05, 2018 02:00 ET (06:00 GMT)