Volga Gas PLC PRODUCTION REPORT FOR MAY 2020 (5934O)

TIDMVGAS

RNS Number : 5934O

Volga Gas PLC

02 June 2020

2 June 2020

Volga Gas plc

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

   PRODUCTION REPORT FOR MAY   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 May 20 20 .

Production Report

The average production in May 20 20 was 3 , 372 barrels of oil equivalent per day ( 45 % higher than April 2020). The increased gas plant throughput was driven by partial recovery demand for gas condensate & LPG in the domestic markets. In addition, there was no repeat of the 5 day planned maintenance shut down as in the prior month.

Average production comprised:

 
                May 2 020     April 2 020    Jan-May 2020 
                 Average         Average        Average 
 Gas:           7.9 mmcfd     6 . 2 mmcfd      9.3 mmcfd 
 Condensate     1,343 bpd       6 94 bpd      1, 413 bpd 
 Oil             565 bpd        479 bpd         500 bpd 
 LPG             146 bpd        106 bpd        2 05 bpd 
 Total        3 , 372 boepd   2 ,316 boepd   3 , 661 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 May 2020, the Group held cash balances of US$ 1 0 . 5 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). Average pricing was:

 
   Pricing ex VAT, USD      May 2020    Jan-May 2020 
                             Average       Average 
 Exchange Rate (RUR/USD)    7 2 .6187   6 9 . 4 006 
 Gas price per mcf            1.78          1.86 
 Condensate price 
  per bbl                     14.20        25.15 
 Oil price per bbl            20.66        31.24 
 LPG price per bbl            14.90        21.26

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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