Russia-focused energy company Volga Gas revealed Friday that the company posted an operating loss of $1.23 million in the first half of 2015, compared to an operating profit of $8.49 million during the same period last year.
The company’s daily production averaged 2,624 barrels of oil equivalent in 1H 2015, which marked a sharp decrease from its average daily output of 4,419 boe in 1H 2014. Volga expects its output to rise to over 6,000 boe per day after bringing the new VM£3 and VM£4 wells online.
Andrey Zozulya, Volga Gas chief executive officer commented in a company statement:
"Since the start of 2015, the business environment has been very challenging for a small, domestically oriented Russian oil, gas and condensate producer like Volga Gas. It is fortunate that the group entered this challenging period in robust financial condition so that it has been able to continue with the development of its assets. Now, with the majority of the current capital program executed, the group should be able to benefit from its increased production capacity and has a solid base from which to grow its production."
Andrey Zozulya was appointed to the board of Volga Gas and as group chief executive officer on May 5, 2015. The company’s former CEO, Mikhail Ivanov, became chairman of Volga on June 6, 2015.
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