Volga Gas PLC Production Report For May 2018 (2497Q)

TIDMVGAS

RNS Number : 2497Q

Volga Gas PLC

05 June 2018

5 June 2018

Volga Gas plc

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

PRODUCTION REPORT FOR MAY 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 May 2018.

In May 2018, average gas processing capacity utilisation increased by 64% compared to April 2018 as LPG production testing commenced. While production continued using exclusively the new Redox gas sweetening process, there was also effectively full uptime at the gas plant during the month.

In the coming months, optimisation of the Redox gas sweetening process will continue. During this period, with normal levels of operational downtime, management expects to produce on average 3,800 boepd of gas and condensate, in line with earlier expectations, resulting in Group production of approximately 4,500 boe per day. This excludes incremental volumes from the LPG project, which are expected to add a further 400 boepd once the LPG facility is fully commissioned.

LPG production testing is expected to be completed by end of June 2018.

The average production in May 2018 was 5,919 barrels of oil equivalent per day (56% higher than April 2018).

Average production comprised:

 
               May 2018     April 2018      Jan-May 
                Average       Average         2018 
                                             Average 
 Gas:         22.6 mmcfd    13.8 mmcfd    15.5 mmcfd 
 Condensate    1,371 bpd      796 bpd      1,037 bpd 
 Oil            636 bpd       688 bpd       747 bpd 
 LPG            142 bpd          -          29 bpd 
 Total        5,919 boepd   3,788 boepd   4,402 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 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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June 05, 2018 02:00 ET (06:00 GMT)