The Company currently has significant exploration and development acreage. The Company intends to grow its revenue by continuing development of its current fields and by effective exploration of its existing acreage. It aims to manage the costs of exploration, development and production of hydrocarbons on its current licence areas by retaining contractors appropriate to the complexity of the specific project. Volga Gas has used turn-key contracts with international contractors with extensive experience of managing the exploration and appraisal of complex reservoirs such as Karpenskiy sub-salt structures, while engaging local contractors to exploit less technically demanding fields such as the supra-salt structures and the Vostochny-Makarovskoye and Dobrinskoye fields.
The Company intends to utilise management’s local knowledge and experience to identify, acquire and exploit undervalued gas assets in Russia. Acquisitions of licences will be pursued on an opportunistic basis, whether through government auctions, or through corporate acquisitions, if the Company believes such assets can add material value either by creating synergies with existing assets or through the application of the latest technology.
Optimise Access to Markets
The Company intends to focus on ensuring that produced gas will have the most effective route to end-customers at the highest possible netback sales price. To achieve this, the Company has focused on acquiring licence areas where it believes that it can readily access the UGSS operated by Gazprom, as well as serve local demand.