The area they expected to grow production is littered with old Soviet drill holes.  This is where the major flooding is hindering their production.  The flooding is forcing them to drill in areas with less pressure and high rates of decline.  It sounds like it is going to be rather pricey to fix the problems.  They have hired an external group to help them.  Also a CEO change may be in the cards.

I still think the SP is undervalued at the moment but there isn't much going for them right now.