The capital investments of Smart Energy Group reached UAH 1.5 billion for 2021, three times as much as the same indicator for 2020 (UAH 0.5 billion). Majority of the investment was made in new drillings in order to increase production of Ukrainian gas. The Group invested the rest of money in its equipment modernization.

Last-year’s growth of gas price enabled Smart Energy Group to increase its investment programme significantly. In its turn, that increase enabled drilling of four new wells: #29 and #31 at Svyrydivske field (Poltava oblast), #29 at Ostroverkhivske field (Kharkiv oblast) and #4 at Svystunkivsko-Chervonolutske field (Poltava oblast). Meanwhile, in 2021 the Group also purchased equipment and launched upgrading of its biggest industrious facility – a temporary metering and separation station (TMSS) of Mekhedivsko-Golotovshchinske field that, besides preparing gas and gas condensate, has been producing LPG of high quality since 2013. In order to increase its efficiency and ecological safety the Group invested UAH 106 million into the equipment, made in Ukraine and some other countries, and currently being installed at the station. Smart Energy has also completed two workovers, the field stage of 3D seismic for Svystunkivsko-Chervonolutske field and installed new compression facilities on well #61 of Svyrydivske field.

“Last year Smart Energy increased investments in its assets by three times due to the revival of business activity after global pandemic and growth of gas price. We hope to develop our enterprises even more, supporting them with the sufficient funds, this year as well. But we are completely aware of the fact that further increase of investments is possible only under conditions of favourable and stable investment climate,” comments Oleksiy Zayets, CFO of Smart Energy Group.

Currently the Group is planning to invest UAH 2.4 billion in its enterprises in 2022. These investments are to be made in new drillings, completion of TMSS upgrade and start of construction of a gas preparation plant at Svystunkivsko-Chervonolutske field.

Reference

Smart Energy is a part of investment group Smart Holding and is in charge of implementing exploration projects, commercial development of the hydrocarbon deposits. It is ranked in top 5 biggest private gas producers of Ukraine, producing over 1 mln m3 of gas per day in total.

Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkiv region) and Enwell Energy, 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 Produkt).