Russian explorer Volga Gas has recorded a 52.5% increase in production in the first quarter of the year.
Its average output of 4,512 barrels of oil equivalent per day (boed) was driven by approval of the company’s operating subsidiary, Gaznefteservice (GNS) upgrade works on its Dobrinskoye gas processing plant.
The facility currently operates with more than 500,000 cubic metres of gas per day, but the firm is looking to double that figure following the installation of minor modules which will see the plant operate at full capacity.
Additionally, the company reported an increase in net cash from $8million at the start of the year to $14.6million by end May 31.
“We have made good progress in 2014 and look forward to delivering strong growth in revenues and cash flow in 2014 and beyond which will facilitate providing shareholders with tangible returns,” said Mikhail Ivanov, Volga Gas chief executive.
The company holds a 100% interest of four licence areas in the Volga region of European Russia.