StockMarketWire.com - Volga Gas said between Jan. 1 and April 30 its production averaged 7341 boepd, from 5932 boepd a year earlier.

"I am pleased to report that the assets of the group are continuing to perform strongly and that the group has been able to deliver significant increases in revenue and cash generation during the first four months of 2017," said CEO Andrey Zozulya.

"Volga Gas has a competitive business and a robust balance sheet which will provide a strong base for the current operations and for further growth in the future," he said.

"Management is looking forward to delivering further increases to the Group's production and profitability through the successful completion of ongoing projects, to maximising the potential of the Group's assets and to seek further opportunities to add value."

Other highlights included:

- During April 2017 total production was at 7,553 boepd. Production is on average 23% above the equivalent levels in 2016.

- Realised prices after adjusting for export taxes and transport costs, increased to $34 per barrel during the first four months of 2017, compared to approximately US$22 per barrel in the same period of 2016.

- Commenced drilling of the Uzen #101 horizontal well.

- Industrial testing of the Redox gas sweetening process is under way.

- Construction of the LPG project is to commence shortly

- Group's cash position increased from $19.7 million on 31 December 2016 to $20.2 million on 30 April 2017.

- Proposed dividend payment of US$5.0 million to be made on 26 May.

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