Volga Gas PLC Production Report For April 2018 (0738N)

TIDMVGAS

RNS Number : 0738N

Volga Gas PLC

04 May 2018

4 May 2018

Volga Gas plc

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

PRODUCTION REPORT FOR APRIL 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 April 2018.

In April 2018, average gas processing capacity utilisation decreased by 9% compared to March 2018 due to few days break for well testing, while test production continued using exclusively the new Redox gas sweetening process.

In the coming months, implementation of the Redox gas sweetening process will continue. During this period our revised average daily production of gas and condensate will remain in the region of 3,800 boepd resulting in Group production of approximately 4,500 boe per day. This excludes incremental volumes from the LPG project once the LPG facility is fully commissioned.

Construction of the LPG project is near completion and testing is currently on-going as part of the commissioning process. The facility should be completed and in production during Q2 2018.

The average production in April 2018 was 3,788 barrels of oil equivalent per day (9% lower than March 2018).

Average production comprised:

 
              April 2018    March 2018    Jan-Apr 2018 
                Average       Average        Average 
 Gas:         13.8 mmcfd    14.8 mmcfd     13.7 mmcfd 
 Condensate     796 bpd       994 bpd       951 bpd 
 Oil            688 bpd       728 bpd       775 bpd 
 Total        3,788 boepd   4,184 boepd   4,010 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 
                                                [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 
 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

END

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May 04, 2018 02:00 ET (06:00 GMT)