The daily production of hydrocarbons by Smart Energy Group increased by 20% in the first half of 2017 – from 3,963 boe (barrels of oil equivalent) per day at the end of December 2016 to 4,769 boe per day at the end of June 2017.

In total, for 6 months of this year, the companies of the group extracted 102.7 million cubic meters of gas and 7.7 thousand tonnes of condensate, and produced 1.8 thousand tonnes of liquefied motor-vehicle propane-butane gas. Figures for the same period of 2016 were as follows: gas – 105.9 million cubic meters, condensate – 8.5 thousand tonnes, liquefied gas – 1.9 thousand tonnes (from equity production of hydrocarbons).

At the same time, over the past period of the current year, the companies of the group transferred UAH 362 million to the budget, including UAH 352.9 million paid to the state budget, and UAH 9.1 million paid to local budgets.

‘Compared to the first half of 2016, our total production figures remain approximately at the same level. Under the conditions of a natural decline in the flow rate of the existing wells, we are selecting efficient operating modes that enable us to hold the rate of decline and reach the targets,’ noted Sergei Glazunov, CEO of Smart Energy Group.

He also stressed that it would be possible to speak about a significant increase only after successful implementation of new projects. He recalled that in late June of this year, a new well was put into operation, which made it possible to increase the average daily production of hydrocarbons, and the drilling of the next well is planned. In addition, a number of major well workover projects are being implemented. ‘Our further plans to expand the drilling program depend on several factors. First of all, it is a favourable investment climate and the state taxation policy related to product output by new wells. After all, such projects are capital-intensive and high-risk ones,’ concluded Sergei Glazunov.

Let us recall that in 2017 Smart Energy Group plans to invest more than UAH 500 million in its own development. The main objectives of the production program are to resume operation of wells from the idle fund and to drill new ones, to carry out intensification and geological exploration operations.

Reference

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

Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkov region) and Regal Petroleum, a listed British company having assets in Poltava and Kharkov regions (Prom-Energo Product).