Volga Gas investors gather for AGM

Russia-focussed oil and gas exploration and production group Volga Gas updated the market on its activities and operations on Friday, as investors gathered for the company’s annual general meeting.

The AIM-traded firm said that, between 1 January and 30 April, group production averaged 7,341 barrels of oil equivalent per day.

During April, total production was at 7,553 boepd, with production on average 23% above the equivalent levels in 2016.

Realised prices after adjusting for export taxes and transport costs increased to $34 per barrel during the first four months of 2017, the board claimed, compared to approximately $22 per barrel in the same period of 2016.

During the period, the company commenced drilling of the Uzen #101 horizontal well.

Industrial testing of the Redox gas sweetening process was also underway, with construction of the company’s LPG project to commence shortly

The group's cash position increased from to $20.2m on 30 April from $19.7m on 31 December 2016.

It proposed a dividend payment of $5m, to be made on 26 May.

“I am pleased to report that the assets of the group are continuing to perform strongly and that the group has been able to deliver significant increases in revenue and cash generation during the first four months of 2017” said chief executive Andrey Zozulya.

“Volga Gas has a competitive business and a robust balance sheet which will provide a strong base for the current operations and for further growth in the future.

“Management is looking forward to delivering further increases to the group's production and profitability through the successful completion of ongoing projects, to maximising the potential of the group's assets and to seek further opportunities to add value.”