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Volga Gas

Volga Gas PLC - PRODUCTION & DRILLING UPDATE REPORT FOR AUGUST 20

RNS Number : 7406X
Volga Gas PLC
02 September 2020
 

2 September 2020

Volga Gas plc

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

 

PRODUCTION & DRILLING UPDATE REPORT FOR AUGUST 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 August 2020.

 

Production Report

 

The average production in August 2020 was 4,317 barrels of oil equivalent per day (20.3% higher than July 2020). This increase was driven by higher gas plant capacity utilisation whereas production in July 2020 was constrained by Gazprom's pipeline maintenance works.  In addition, further increases in oil production came from new slim hole wells.

 

Average production comprised:

 

 

Aug 2020

Average

July 2020

Average

Jan-Aug 2020

Average

Gas:

8.9 mmcfd

7.6 mmcfd

8.7 mmcfd

Condensate

2,111 bpd

1,786 bpd

1,567 bpd

Oil

565 bpd

416 bpd

493 bpd

LPG

162 bpd

113 bpd

175 bpd

Total

4,317 boepd

3,590 boepd

3,685 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 31 August 2020, the Group held cash balances of US$12.1 million, and has no debt.

 

Pricing update

 

Domestic pricing for oil & LPG were slightly reduced in RUR and further impacted with local currency devaluation. Average pricing was:

 

Pricing ex VAT, USD

Aug 2020

Average

July 2020

Average

Jan-Aug 2020

Average

Exchange Rate (RUR/USD)

73.7998

71.2853

70.1772

Gas price per mcf

1.75

1.81

1.84

Condensate price per bbl

27.02

25.95

26.80

Oil price per bbl

32.59

34.70

31.44

LPG price per bbl

32.45

36.70

25.42

 

 

 

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

 

Andrey Zozulya, Chief Executive Officer

Vadim Son, Chief Financial Officer

Tony Alves, Investor Relations Consultant

+7 (903) 385 9889

+7 (905) 381 4377

+44 (0) 7824 884 342

 

 

S.P. Angel Corporate Finance LLP

+44 (0) 20 3470 0470

Richard Morrison, Richard Hail, Soltan Tagiev

 

 

 

FTI Consulting

+44 (0) 20 3727 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 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 

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