Russia's Volga Gas said Tuesday that its production in January and February averaged 2,679 barrels of oil equivalent per day (boepd) compared with the 1,995 boepd it achieved during 2012.
Reporting its results for 2012, Volga Gas said that the key event of last year was the start of production from its largest field, Vostochny Makarovskoye, which was achieved on completion of the first stages of an ongoing upgrade to Voga’s gas processing plant located on the nearby Dobrinskoye field. The Dobrinskoye gas plant currently operates close to its processing capacity of 8.8 million cubic feet per day (MMcf/d), and the upgrade is expected to expand capacity to 35 MMcf/d during 2013.
Volga said that it will add a third production well to its Vostochny Makarovskoye field during 2013, after a successful workover of well No. 30 on the field last year.
Volga Chief Executive Mikhail Ivanov commented in a company statement:
"2012 was a pivotal year for Volga Gas and while our production was marginally down compared to 2011, the start of production from VM and the continuing upgrade to the gas plant capacity will signal a new growth phase for production from our fields. The key strategic aim for 2013 and 2014 is to realize the full production potential of the VM field by completing the gas plant upgrade and adding further production wells to the field. This will provide a significant lift in revenues and cash flows and a platform for future growth for Volga Gas."
Volga's assigned proven and probable reserves were independently assessed last August at some 44 million barrels of oil equivalent.