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Oil Gas and Condensate Reserves

Oil Gas and Condensate Reserves

In March 2017 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 three producing fields, Dobrinskoye, Vostochny Makarovskoye and Uzenskoye as well as the non-producing Sobolevskoye field, as at 31 December 2016, was prepared in accordance with reserve definitions prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE).

The reserve report attributes Proved and Probable ("2P") reserves of 12.2 million barrels ("mmbbl") of oil and condensate and 132 billion cubic feet ("bcf") of gas, and 369,000 tonnes of LPG or a total of 38.4 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 12% for the proved reserves at US$140.3 million and for the 2P reserves at US$162.3 million.

A summary of the reserves estimated for each field as at 31 December 2016 are in the following tables:

Proved Reserves

Oil & Condensate(mmbbl)

Gas
(bcf)

LPG(thousands of tonnes)

Total
(mmboe)

Total Proved Reserves

10.951

98.5

277

30.619

Dobrinskoye

0.480

6.5

-

1.560

VM

4.069

92.0

277

22.657

Uzenskoye

6.087

  - 

 -

6.087

Sobolevskoye

0.315

-

-

0.315

 

Proved & Probable (2P) Reserves

Oil & Condensate(mmbbl)

Gas

(bcf)

LPG(thousands of tonnes)

Total

(mmboe)

Total 2P Reserves

12.153

131.5

367

38.382

Dobrinskoye

0.702

9.7

-

2.322

VM

5.049

121.8

367

29.658

Uzenskoye

6.087

  - 

 -

6.087

Sobolevskoye

0.315

-

-

0.315

 

The full 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.

Gas processing

Gas processing

The gas plant process gas from both the Vostochny Makarovskoye and Dobrinskoye fields