Volga Gas PLC Production Report For July 2017 (9627M)

TIDMVGAS

RNS Number : 9627M

Volga Gas PLC

03 August 2017

3 August 2017

Volga Gas plc

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

PRODUCTION REPORT FOR JULY 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 July 2017.

In July 2017, average gas processing capacity utilisation increased slightly compared to June 2017 while test production continued using the new Redox gas sweetening process. During July 2017, the Dobrinskoye gas plant worked successfully and exclusively using the Redox based gas sweetening process.

In the coming months implementation of the new process will continue with gradual increases in production. With the new process, it is expected that more downtime will be necessary so that the average daily production of gas and condensate over a normal month would be in the region of 6,300 boepd resulting in Group production of approximately 7,000 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 July 2017 was 2,593 barrels of oil equivalent per day (c.11% higher than June 2017).

Average production comprised:

 
               July 2017         Jun 2017          Jan-Jul 
                Average      Average (revised)       2017 
                                                    Average 
 Gas:          8.9 mmcfd        7.5 mmcfd        22.9 mmcfd 
 Condensate     500 bpd          483 bpd          1,301 bpd 
 Oil            612 bpd          597 bpd           537 bpd 
 Total        2,593 boepd      2,334 boepd       5,658 boepd 
 

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 production number for June 2017 has been revised upwards from 7.0 mmcf/d, as stated in the Production Statement issued on 4 July 2017, to 7.5 mmcf/d, in line with the final official submissions. Oil and condensate volumes are unchanged. The total production number for June 2017 is consequently revised from 2,246 to 2,334 boepd.

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 July 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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August 03, 2017 02:00 ET (06:00 GMT)