Eurasia Journal News
  • SD UK

  • Volga Gas: Production Report for December 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 December 2020.

    Production Report

    The average production in December 2020 was 3,310 barrels of oil equivalent per day (12.4% higher than November 2020). This increase was driven by well VM4 being put back into production following a workover for the last eight days of the month.

    Average production comprised: 

    Dec 2020

    Average

    Nov 2020

    Average

    Jan-Dec 2020

    Average

    Gas:

    6.3 mmcfd

    6.1 mmcfd

    8.3 mmcfd

    Condensate

    1,589 bpd

    1,165 bpd

    1,533 bpd

    Oil

    508 bpd

    619 bpd

    512 bpd

    LPG

    164 bpd

    150 bpd

    180 bpd

    Total

    3,310 boepd

    2,945 boepd

    3,616 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 December 2020, the Group held cash balances of US$12.0 million, and has no debt. Cash balance increase was mainly driven by increased trade prepayments from customers (approx. +$1.4m vs November) on the eve of New Year Holidays to cover continuous sales. 

    Pricing update

    Domestic pricing for condensate was improved mainly due to Urals price increase during the month, oil pricing was at the same level in RUR with prior month and was slightly improved due to local currency strengthening. LPG price decrease was driven by seasonally lower demand. Gas price is fixed in RUR. Average pricing was:

    Pricing ex VAT, USD

    Dec 2020

    Average

    Nov 2020

    Average

    Jan-Dec 2020

    Average

    Exchange Rate (RUR/USD)

    74.0563

    77.0462

    72.1464

    Gas price per mcf

    1.74

    1.68

    1.79

    Condensate price per bbl

    31.58

    27.59

    26.84

    Oil price per bbl

    34.96

    34.11

    32.27

    LPG price per bbl

    28.75

    30.60

    27.40


    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 

    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 rns@lseg.com or visit www.rns.com.

    RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

    Previous post

    OPEC daily basket price stood at $53.29 a barrel Wednesday, 6 January 2021

    Next post

    OPEC: Daily Basket Price Stood at $54.39 a Barrel Friday, 8 January 2021