Volga Gas

Written by Lionel Therond

Volga Gas is an independent oil and gas exploration and production company focused on the Volga Region of western Russia and with a 100% interests in four licenses to explore for and produce oil, gas and condensate in the Volgograd and Saratov Regions. The share price has steadily recovered from a low of c.30p reached in Jan 2016 to the current c.55p, following an improvement in production operations. In our opinion the stock as fairly valued versus that of industry peers; however, we view the recent stock purchase by a Director of Baring Vostok Capital Partners as a positive indicator for potential share price performance.

In 2017, the company will continue to benefit from the full year impact of capacity upgrades to the gas processing plant at the end of 2016 as well as potential additional production from a horizontal well planned to be drilled in 2017. A further increase to commodity prices in 2017 would also positively impact the financial performance of the company.


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