Production Results for 1Q2019
Production Results for 1Q2019

PJSC Ukrnafta announces its production results for 1Q2019.

Highlights:

  • stable growth of crude oil, condensate and natural gas production continues (+6.4% and +10.6% respectively y-o-y);
  • remote monitoring system has been increased up to 171 wells with more automation expected in 2Q2019;
  • 41 capital workovers and stimulation operations of oil and gas wells have been completed;
  • 65 idle oil wells were reactivated.

 

1Q2019

4Q2018

1Q2019/4Q2018, %

1Q2018

1Q2019/1Q2018, %

Production of crude oil and condensate, ktonnes

376

371

1.2

353

6.4

Gas production, mln m3

290

284

2.0

262

10.6

Production of LPG, ktonnes

29

29

-0.4

29

-1.9

In 1Q2019, Ukrnafta increased oil and condensate production up to 4.17 ktonnes/day, 6.4% up y-o-y and 3.5% up q-o-q. In turn, average daily gas production grew up to 3.22 mln m3/day, 10.5% up y-o-y and up 4.3% q-o-q.

Ukrnafta continues to increase production, though its investment possibilities have been limited for four years already and the company is working on the exhausted wells. The positive dynamics takes place due to the production stimulation, optimization of capital and planned workovers, reactivation of idle wells, use of innovative technologies and replacement of the outdated equipment. At the same time, implementation of shareholders’ decision to pay off the historical tax debt of Ukrnafta with funds accumulated as a result of purchase of 4 bln m3 of gas by NAK Naftogas, will open the path to increase of investments, modernization of production assets and stable growth of hydrocarbons production.

In 1Q2019, Ukrnafta completed three hydraulic fracturing operations, 28 capital workovers and 10 opex workovers. As of March 31, 2019, due to these operations, Ukrnafta produced 7.06 ktonnes of oil and condensate and 15.99 mln m3 of gas. Moreover, in the reported period the company reactivated 65 idle oil wells.

The positive production dynamics enables Ukrnafta to improve its forecast of total production volume for 2019. According to the estimates as of April 1, 2019, the annual oil production should increase by 4% and make up 1,507 ktonnes (plan – 1,451 ktonnes, oil production for 2018 – 1,448 ktonnes). The gas forecast is up 4% against the plan and will make up 1,129 mln m3 (plan – 1,084 mln m3, gas production for 2018 – 1,082 mln m3).