Drilling/Production Report

Released : 05.12.2017

RNS Number : 3429Y
Volga Gas PLC
05 December 2017
 

5 December 2017

Volga Gas plc

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

 

PRODUCTION REPORT FOR NOVEMBER 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 November 2017.

 

In November 2017, average gas processing capacity utilisation increased by 50% compared to October 2017, while test production continued using exclusively the new Redox gas sweetening process. Due to extensive Redox process set-up in November 2017, only about 60% of produced gas managed to be supplied into the pipeline with the rest being flared.

 

In the coming months, implementation of the new process will continue with gradual increases in production.  During this period it is expected that the average daily production of gas and condensate would be in the region of 3,600 boepd resulting in Group production of approximately 4,300 boe per day, excluding additional potential production from the Uzen well #101 and incremental volumes from the LPG project.  Construction and commissioning of the LPG project is close to completion but is now expected in Q1-2018.

 

The increase in oil production reflects the Uzen well #101 test production which commenced in October 2017, utilizing electrical submersible pumps.  While the absence of the necessary storage capacity at the well site has constrained the ability to conduct a full, extended well test; the data collected from the production testing operations indicate that the well would be able to sustain a flow rate within the range of management's expectations of 600 barrels of oil per day.  Production testing continues while construction of a well site storage facility and a flow line to the main Uzen oil field facility is concluded - expected during December 2017. 

 

The average production in November 2017 was 4,946 barrels of oil equivalent per day (44% higher than October 2017). 

 

Average production comprised:

 


November 2017

Average

October 2017

Average

 Jan-Nov 2017

Average

Gas:

18.0 mmcfd

12.0 mmcfd

19.2 mmcfd

Condensate

1,134 bpd

862 bpd

1,147 bpd

Oil

811 bpd

577 bpd

575 bpd

Total

4,946 boepd

3,432 boepd

4,916 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


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 Redmayne, Richard Morrison, Richard Hail




FTI Consulting

+44 (0) 20 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 company news service from the London Stock Exchange
 
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