Volga Gas PLC Drilling/Production Report (3429Y)
December 05 2017 - 2:00AM
UK Regulatory
TIDMVGAS
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 October 2017 Jan-Nov
Average Average 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
+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 company news service from the London Stock Exchange
END
DRLEAKALELLXFFF
(END) Dow Jones Newswires
December 05, 2017 02:00 ET (07:00 GMT)
Volga Gas (LSE:VGAS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Volga Gas (LSE:VGAS)
Historical Stock Chart
From Apr 2023 to Apr 2024