Volga Gas Cuts Output, Warns of Uzen Downgrade
Russia-focused Volga Gas recorded a 21.1% month-on-month in average oil and gas production in July to 4,885 boe/day.
The output slump was caused by a three-day-maintenance run at its gas processing facilities, as well as lower production at the East-Makarov gas field as a result of high levels of water cut, the London-listed company said in an August 5 statement.
July’s average daily output included 16.6mn ft3 of gas, 1,480 barrels of condensate, 359 barrels of oil and 276 barrels of LPG.
Volga also noted that a new well at the Uzen field had produced oil and gas at levels below expectations, potentially leading to a reserves downgrade. The Uzen-4 horizontal sidetrack was drilled to a length of 1,132 metres and test-flowed at a daily rate of 1.8mn ft3 of gas and 39 barrels of oil.
“This result is below expectations,” London-listed Volga said in a stock exchange filing. “The block targeted for development by the sidetrack appears to be mainly gas saturated.”
As a result, the company warned it could slash its estimate for oil resources at the Albian reservoir by 10%, with the entire reservoir model for the Uzen field requiring an update.