Volga Gas PLC PRODUCTION & DRILLING UPDATE REPORT FOR JULY 2020 (4341V)

TIDMVGAS

RNS Number : 4341V

Volga Gas PLC

07 August 2020

7 August 2020

Volga Gas plc

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

   PRODUCTION & DRILLING UPDATE REPORT FOR JULY   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 July 20 20 .

Production Report

The average production in July 20 20 was 3 , 590 barrels of oil equivalent per day ( 10.5 % higher than June 2020). This increase was driven by improved availability of gas plant capacity. In the prior month production was suspended for 7 days due to planned maintenance on Gazprom's facilities.

Average production comprised:

 
              July 2 020     June 2 020     Jan-July 2020 
                Average        Average         Average 
 Gas:          7.6 mmcfd      6.7 mmcfd       8.7 mmcfd 
 Condensate    1,786 bpd      1,560 bpd      1, 488 bpd 
 Oil            416 bpd        459 bpd         482 bpd 
 LPG            113 bpd        106 bpd         177 bpd 
 Total        3,590 boepd   3 , 248 boepd   3 , 593 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 July 2020, the Group held cash balances of US$1 0 . 0 million, and has no debt.

Pricing update

International oil pricing has been slightly recovering during the month positively affecting domestic pricing for oil and condensate. In addition, LPG price continued to grow as a result of seasonal increases in demand. Average pricing was:

 
   Pricing ex VAT, USD      July 2020   June 2020   Jan-July 
                             Average     Average       2020 
                                                     Average 
 Exchange Rate (RUR/USD)    71 .2 853    69.2239    6 9. 6500 
 Gas price per mcf            1.8 1       1.85        1.86 
 Condensate price per 
  bbl                       2 5 . 95      26.49      26. 65 
 Oil price per bbl          3 4 . 70      32.03     3 1 . 18 
 LPG price per bbl          3 6 . 70      30.26     2 4 . 49

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 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.

END

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