Volga Gas says that the Uzenskaya-5 well has been drilled, tested and completed as a productive oil well.

An interval between 976-985 meters was tested. The well flowed at an equivalent of 731.5 cubic metres of light oil per day (4,608 bbl/day) in drill stem test. The well is expected to commence production shortly. Management believes that the well will produce initially at not less than 400 barrels per day with a 6 mm choke. Development operations on the Uzenskaya field continue with the drilling of the Uzenskaya-6 well.

Mikhail Ivanov, Chief Executive of Volga Gas commented, "Following the success of our previous wells on the VM licence area, we are disappointed with the result of VM-4. Our short term priority is to build up a sustainable revenue base from the two existing productive wells on VM, which will also enable us to decide on the optimal way to maximise recovery of reserves from the field.

"Our disappointment on VM is offset by the better than anticipated results on Uzenskaya, which will be an important source of cash flow in the short term. We hope to build on that with further low risk exploration, as we prepare to test the major sub-salt prospects in both the Karpensky and Pre-Caspian Licences."

Tags: Volga Gas Plc