Volga Sees Production Boost during First Half
Russia-focused Volga Gas reported Tuesday that its first-half production increased by 28.1 percent to average 2,550 barrels of oil equivalent per day during the six months to June 30.
Reporting its results for the first half of 2013m, the company – which is focused on the Volga region of Russia – also confirmed that its production is currently averaging 3,263 boepd.
The firm said its average production on the Uzenskoye oil field was lower at 752 bopd (1H 2012: 939 bopd) due to increased weather disruption during March and April. Production has commenced on the Urozhainoye 2 license area, where the Sobolevskaya well is currently producing at 150 bopd.
Meanwhile, at the firm's Dobrinskoye gas plant upgrade work to increase its capacity is close to completion and an application has been made to operate the plant at higher rates.
Volga CEO Mikhail Ivanov commented in a company statement:
Following completion of the first phases of the gas plant upgrade in October 2012, Volga Gas has achieved its initial aim of having its three main fields on full time production. We have added further production capacity with successful well recompletions and have brought additional, albeit modest, oil production on stream at Sobolevskoye.
"The remaining stages of the plant upgrade are close to completion, and pending receipt of the necessary authorization, we expect to more than double gas and condensate production from our existing wells. This would take the group's total production to over 4,000 boepd. Once we have achieved the increased gas plant capacity, we plan to undertake further development drilling on the VM field with the aim of making full utilization of the higher capacity and to achieve a medium term target of over 7,000 boepd.
"In addition, we plan further exploration on our existing licences and will continue actively to search for opportunities to expand the group's operations by value-accretive acquisitions."
Volga's revenues increased by 15.8 percent to $15.4 million during 1H 2013, while the firm turned the $5 million loss made in 1H 2012 into a pre-tax profit of $4.3 million.
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