Ukrnafta started drilling a new well on Verkhnyomaslovetskyi field

On June 24, PJSC Ukrnafta started drilling a new well on Verkhnyomaslovetskyi field in Lviv oblast. The planned depth of the future directional well #102 is roughly 1,500 m with deviation of 185 m, while the initial daily production is envisaged at the level of 27 t/day. Well #102 is expected to open access to oil deposits of lower menilite beds. As of July 4, Ukrnafta has drilled 318 m already. The end of drilling is scheduled for the middle of August. The specialist of Ukrnafta Drilling provided drilling of a new well with a help of companies-contractors by use of a drilling rig Uralmash-3D. Mavriky Kalugin, a Member of the Executive Board, Executive Vice President for Upstream of Ukrnafta, commented: “I am glad we`ve resumed drilling and are moving in the right direction. It’s a small step, though. To make a significant change in our production growth we need to drill at least 10 new oil and gas wells per year, spending approximately UAH 800-900 mln per year. Meanwhile, we continue to work on the existing wells with minimal investments.” Ukrnafta’s financial plan for 2019 envisages drilling of three new wells by the total investment program, estimated at UAH 2.9 bln. Nevertheless, the fulfillment of the program depends on the solution of the problem of the legacy tax debt, as well as on the stable sales of oil and condensate through the system of state-run auctions. Note to editors: Ukrnafta is the largest oil company in Ukraine. The company’s share in the nation’s oil and gas condensate production in 2018 is 63.6%, while the share in total gas production is 5.5%. There are 28 own drilling rigs on the balance sheet of the company, 1928 oil and 165 gas wells, and 537 filling stations that cover every region of Ukraine. The company is 50%+1 share owned by Naftogaz of Ukraine, a fully state-owned holding company.