Volga Gas announces increase in oil and gas production

Volga Gas, the oil and gas exploration and production group announced an increase in its levels of production of oil and gas last month.

In July 2017, average production of oil increased to 2,593 barrels per day, which was approximately 11% higher than in June.

Average gas production also increased slightly from 7.5 mmcfd in June to 8.9 mmcfd in July, the company said in a statement, while that of condensate increased from 483bpd to 500bpd.

The company also began testing production with the new Redox gas sweetening process, with its Dobrinskoye gas plant having worked successfully and exclusively with that new process.

Implementation would continue over the coming months with gradual increases in production, Volga said.

However, the AIM-listed outfit also forecast that "more downtime" would be necessary with the new process "so that the average daily production of gas and condensate over a normal month would be in the region of 6,300 boepd resulting in group production of approximately 7,000 boe per day".

That latter figure excluded potential increased output from it Uzen well #101 and higher volumes from its LPG project which was currently under construction.

Over the year to July, total production had run at 5,658 barrels of oil equivalent per day.

Shares were up by 2.65% to 58.00p by 09:55 BST