Smart Energy Group increased average daily gas production by 7.8% in Q1, 2020

Smart Energy Group increased average daily gas production by 7.8% in Q1, 2020
In Q1, 2020, the companies of Smart Energy Group increased the total average daily production rate by 7.8%: from 981 Km3/day up to 1.06 mln m3/day for gas. The average daily production rate for condensate in the group reached nearly 0.1 Ktonnes/day (up 6.3%) for the reported period.







In Q1, 2020, Smart Energy Group of companies produced cumulatively 96.3 mln m3 of gas and 8.8 Ktonnes of condensate. Thus, the production growth made up 9.0% for gas and 7.5% for condensate against the results of Q1, 2019 (88.4 mln m3 and 8.2 Ktonnes respectively). In the reported period the group of companies produced 2,160 tonnes of LPG, down 1.8% against Q1, 2019

Sergii Glazunov, CEO of Smart Energy Group, commented: “Due to the professionalism of our specialists and to the strategy of the whole group we continue to increase the hydrocarbons production and, consequently, to strengthen the energy independence of our state. Meanwhile, it is getting more and more difficult under the current circumstances of lockdown restrictions, low prices for hydrocarbons and lower demand on the resource due to strengthening of the economic crisis. Today, gas producers do also need help from the state, in particular, legislative changes that would increase investor appeal and enable further development of the industry.”

Ukrainian assets of British Regal Petroleum company

The commencement of production from well #119 in Mekhedivsko-Golotovshchynske field in H2, 2019, became a significant boost for overall increase of production in the fields of Poltava region by the company. Meanwhile, a decline in production rates from well #10 Vasyshchivske impacted negatively the production volumes in Vasyshchivske field in Kharkiv oblast. In order to provide hydrocarbons production and preparation on the proper level and to ensure wells operation in Vasyshchivske field, new compression equipment was put into operation in Q1, 2020.

In the reported period, the Representative Office of Regal Petroleum Corporation Limited completed drilling of a new well #54 in Svyrydivske field. Currently, the completion operations by well testing are on. Its production hook-up is anticipated in Q3, 2020.

In March the British company also expanded its activities to Svystunkivsko-Chervonolutske field (Poltava oblast) through the acquisition of Arkona Gas-Energy LLC and is planning to commence spudding of the first well there during next 12 months.

Ukrgazvydobutok

In the end of Q1 - beginning of Q2, 2020, PrJSC Ukrgazvydobutok resumed operation of two wells after workovers in Ostroverkhivske field, Kharkiv oblast. That enabled to increase the average daily production rate up to 75 Km3/day in 2020.


Reference

Smart Energy is a part of Smart-Holding and is in charge of implementing exploration projects, commercial development of the hydrocarbon deposits.

Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkiv region) and Regal Petroleum, a listed British company having assets in Poltava (the Representative Office of Regal Petroleum Corporation Limited and Arkona Gas-Energy LLC) and Kharkiv regions (Prom-Energo Product).

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