TIDMVGAS
RNS Number : 6145J
Volga Gas PLC
14 April 2020
The following amendment has been made to the "PRODUCTION REPORT
FOR MARCH 2020" announcement released on 2 April 2020 at 07:00
under RNS No 4912I. The average realised prices for the three month
period January to March 2020 and the gas price average for March
2020 were incorrectly stated and have been corrected below:
Pricing ex VAT, USD March 2020 Jan-March 2020
Average Average
Gas price per mcf 1.76 1.95
Condensate price per
bbl 24.89 36.84
Oil price per bbl 31.72 42.47
LPG price per bbl 20.10 26.83
All other details remain unchanged.
The full amended text is shown below.
14 April 2020
Volga Gas plc
("Volga Gas", the "Company" or the "Group")
PRODUCTION REPORT FOR MARCH 2020
UPDATE RE: COVID-19
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 March 20 20
.
Production Report
The average production in March 20 20 was 4 , 070 barrels of oil
equivalent per day ( 3 % lower than
February 2020). The gas plant unit was working without disruption during the month.
Average production comprised:
March 2 020 February 2 020 Jan-March 2020
Average Average Average
Gas: 10 . 3 mmcfd 10 . 8 mmcfd 10 . 7 mmcfd
Condensate 1,623 bpd 1,679 bpd 1,673 bpd
Oil 4 92 bpd 4 77 bpd 4 8 5 bpd
LPG 233 bpd 260 bpd 257 bpd
Total 4,070 boepd 4,208 boepd 4,203 boepd
Production data is based on preliminary monthly production
reports prepared for the purposes of submissions to tax authorities
for Mineral Extraction Tax purposes. Final monthly production
reports may vary marginally from preliminary monthly production
reports.
As at 31 March, the Group held cash balances of US$ 1 2 . 3
million, and has no debt.
Pricing update
International oil pricing drop had a significant impact on oil /
condensate local pricing added with Russian Ruble (RUR)
devaluation. Gas price is fixed in RUR but still impacted with
local currency devaluation against USD (official Central Bank of
Russia exchange rate at the end of March - 77.7325 RUR vs 61.9057
RUR as of January 01, 2020). Average pricing was:
Pricing ex VAT, USD March 2020 Jan-March 2020
Average Average
Gas price per mcf 1.76 1.95
Condensate price
per bbl 24.89 36.84
Oil price per bbl 31.72 42.47
LPG price per bbl 20.10 26.83
Covid-19 update
Whilst our operations to date have seen little direct impact
from the Covid-19 pandemic, other than the significant downturn in
international oil prices, we have focused on implementing measures
to ensure the safety of our employees and contractors, the
integrity of our operational facilities and to prepare the business
to face potential challenges that emerge. The potential impacts are
currently unknown but could include production disruption due to
government restrictions or customer sales, impact on our workforce
and supply chain disruption.
The following actions have been implemented to mitigate the
risks associated with the Covid-19 pandemic:
-- Majority of office staff are working from home with meetings conducted online.
-- Working shifts extended for field staff to minimise travel by the workforce.
-- Safe distancing guidelines and sanitising initiatives
implemented across office and operating facilities.
-- All business travel suspended.
-- Forward purchased catering to maintain buffer stock for field canteens.
-- Work underway to build a six month inventory of production
consumables to mitigate possible lack of supply or logistics
issues.
Andrey Zozulya, Chief Executive of Volga Gas, commented:
"In the current Covid-19 global crisis, our first priority is
the health and safety of all the people who work for and with Volga
Gas. We are also determined to play our part in protecting the
communities in which we operate.
"The Group remains cash flow positive at an operational level at
current oil prices, assuming no extensive disruptions, and thanks
to our strong balance sheet and our ability to delay or cancel
capital investment projects as necessary, the Board of Volga Gas is
confident that the Group will be able to withstand the current
crisis and continue as a viable business for the long term."
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 Officer +7 (905) 381 4377
Vadim Son, Chief Financial Officer +44 (0) 7824 884
Tony Alves, Investor Relations Consultant 342
+44 (0) 20 3470
S.P. Angel Corporate Finance LLP 0470
Richard Morrison, Richard Hail, Soltan Tagiev
+44 (0) 20 3727
FTI Consulting 1000
A lex 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 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 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.
END
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