Average daily production for the fourth quarter was 4,010 bopd, a reduction of 6% from third quarter average production of 4,267 bopd. The increasingly stable production level is due to the effects of the waterflood program arresting decline and now positively impacting 14 wells in our main production area. The waterflood campaign is being further expanded in 2014 with four more wells to be converted to water injectors. No new wells were completed in the fourth quarter of 2013.

Operating cash flow has been increased by the recently introduced fiscal measures. MET relief of 80% is being applied to production from 1 September 2013 which increases well head revenue per barrel to c. US$38/bbl from c. US$22/bbl at a Brent oil price of US$100/bbl.

Tags: RusPetro plc