July 9, 2020, London – JKX Oil & Gas, the parent company of the JV Poltava Petroleum Company (hereinafter referred to as JV PPC), published the results of its work for 6 months of 2020 on the London Stock Exchange.
According to the JKX report, the growth of hydrocarbon production throughout the Group increased by 3% compared to the same period last year. Low production growth is associated with the influence of Covid-19, which slowed down production processes.
The production of all hydrocarbons of the Ukrainian asset of the Group, JV PPC, decreased by 1% compared to the corresponding period last year, in particular, the natural gas production decreased by 5% and amounted to 125.6 mln.m3. At the same time, the production of oil and gas condensate demonstrates positive growth dynamics, which is + 20% compared to last year and amounts to 24.8 million tons.
JV PPC in 6 months of work successfully completed the drilling of a new IG-143 well, the initial production rate is 135 thousand m3 and the current is 17.7 m3 / day of gas and 1.4 m3 / day of oil. During this period, additional perforation of two wells was also carried out – Ig-142 and Ig-143 Ignatovskoye fields. JV PPC plans to drill a new well Ig-146 Ignatovskoye field at the end of the 3rd quarter of 2020.
The report states that JV PPC carried out a scheduled technical inspection of its own UPPNG, and also performed work to increase the efficiency of the LPG installation. The company also overhauled its own TW-100 rig.
For 6 months of 2020, JV PPC totaled 157 million UAH. rental payments to the state budget of Ukraine, of which 7.8 million UAH were allocated to the local budgets of the Poltava region.
“We continue to work and fill the budget of Ukraine even in adverse conditions for the gas industry, low prices and the negative impact of the pandemic. At the same time, we provide jobs and help local communities. Therefore, we recall the importance of the support of the gas production sector by the Government of Ukraine, in particular through the introduction of fiscal stimulus initiatives and the continued deregulation,” commented CEO of JV PPC, Victor Gladun.
In addition, it is reported that in Ukraine from January to July, hydrocarbon prices decreased significantly compared to the same period in 2019, in particular, the price of natural gas decreased by 47% and 32% for oil and gas condensate.
JV Poltava Petroleum Company is a joint Ukrainian-British venture that was established in 1994. JV PPC is one of the leaders among non-state oil and gas companies in Ukraine. The company’s field of activity is the search, exploration, production and preparation of oil and gas.
JV PPC is a 100% subsidiary of JKX Oil & Gas plc, whose shares have been listed on the London Stock Exchange since 1995.
The minority shareholders of the Group are Eclairs Group Limited – 27.47%, Cascade Investment Fund – 19.97%, Neptune Invest & Finance Corp. – 12.98%, Keyhall Holding Ltd – 11.45%, Interneft Ltd – 6.16%.