Volga Gas: Production & Drilling Update Report for October 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 October 2020.
Production Report
The average production in October 2020 was 3,680 barrels of oil equivalent per day (7.4% lower than September 2020). This decrease was driven by the temporary shut-in of well VM-4 (the main condensate producer on the VM field) pending installation of replacement parts for the downhole pump in the well.
Average production comprised:
Oct 2020 Average | Sep 2020 Average | Jan-Oct 2020 Average | |
Gas: | 9.1 mmcfd | 9.1 mmcfd | 8.8 mmcfd |
Condensate | 1,442 bpd | 1,664 bpd | 1,564 bpd |
Oil | 494 bpd | 579 bpd | 501 bpd |
LPG | 227 bpd | 220 bpd | 185 bpd |
Total | 3,680 boepd | 3,976 boepd | 3,713 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 October 2020, the Group held cash balances of US$10.9 million, and has no debt.
Pricing update
Domestic pricing for oil was slightly increased in RUR, whereas for condensate it was slightly lower. The LPG price decreased as is normal for winter seasons, although shortages in local supplies kept the LPG price higher than normally expected. Average pricing was:
Pricing ex VAT, USD | Oct 2020 Average | Sep 2020 Average | Jan-Oct 2020 Average |
Exchange Rate (RUR/USD) | 77.5924 | 75.6621 | 71.4704 |
Gas price per mcf | 1.67 | 1.71 | 1.81 |
Condensate price per bbl | 24.26 | 24.94 | 26.33 |
Oil price per bbl | 32.37 | 32.14 | 31.69 |
LPG price per bbl | 29.68 | 33.93 | 27.02 |
Novo Kurilovskiy prospect update
Further to the announcement of 6 October 2020, testing operations have started at the Novo Kurilovskiy prospect. The formation will be tested by several perforation intervals in order to gather detailed information about the saturation and reservoir properties. The Group anticipates to complete the testing programme by the end of 2020.
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, Adam Cowl | |
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
