Oil Gas and Condensate Reserves

In April 2018 an independent evaluation of the Group's oil, gas and condensate reserves by OOO Geostream Assets Management was completed.  The independent assessment of the reserves attributable to the Group's two producing fields, Dobrinskoye, Vostochny Makarovskoye  as at 31 December 2017, was prepared in accordance with reserve definitions prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE). The assessment of Uzensoye and non-producing Sobolevskoye fields was not re-evalued and remained unchanged from previous assessment.

The reserve report attributes Proved and Probable ("2P") reserves of 11.1 million barrels ("mmbbl") of oil and condensate and 78 billion cubic feet ("bcf") of gas, and 205,000 tonnes of LPG or a total of 26.5 million barrels of oil equivalent ("mmboe"), to the Company's fields.  The reserve report calculated the net present value of future net revenue discounted at an annual rate of 10% for the proved reserves at US$78.1 million and for the 2P reserves at US$105.3 million.

A summary of the reserves estimated for each field as at 31 December 2017 are in the following tables:

Proved Reserves

Oil & Condensate(mmbbl)

Gas
(bcf)

LPG(thousands of tonnes)

Total
(mmboe)

Total Proved Reserves

9.827

57.4

148

21.125

Dobrinskoye

0.574

4.2

-

1.280

VM

3.325

53.2

148

13.917

Uzenskoye

5.613

  - 

 -

5.613

Sobolevskoye

0.315

-

-

0.315

 

Proved & Probable (2P) Reserves

Oil & Condensate(mmbbl)

Gas

(bcf)

LPG(thousands of tonnes)

Total

(mmboe)

Total 2P Reserves

11.125

77.6

205

26.470

Dobrinskoye

0.574

4.2

-

1.280

VM

4.623

73.4

205

19..262

Uzenskoye

5.613

  - 

 -

5.613

Sobolevskoye

0.315

-

-

0.315

 

The full report can be downloaded here.

Previous report can be downloaded here.

Notes:

1.     Volga Gas (through its wholly owned subsidiaries PGK and GNS) is the operator and has a 100% interest in four licences to explore for and produce oil, gas and condensate in the Volga region.

2.     The reserve estimates were prepared in metric units: tonnes for oil, condensate and LPG and standard cubic metres for gas.  The conversion ratios from tonnes to barrels applied in the table above were 7.833 barrels per tonne of oil, 8.75 barrels per tonne of condensate and 11.735 barrels per tonne of LPG.  One cubic metre equates to 35.3 cubic feet and 6,000 standard cubic feet of gas represents one barrel of oil equivalent.

3.     The above reserve estimates, prepared in accordance with reserve definitions prepared by the Oil and Gas Reserves Committee of the SPE, have been reviewed by Mr Andrey Zozulya, Director and Chief Executive Officer of Volga Gas plc, for the purposes of the Guidance Note for Mining, Oil and Gas companies issued by the London Stock Exchange in June 2009. Mr Zozulya holds a degree in Geophysics and Engineering from the Groznensky Oil & Gas Institute and is a member of the Society of Petroleum Engineers.

Latest News Latest Production Report
Share Price 55.00p Change 0.00 at 08:08 on 10/12/18