Cadogan Petroleum, the British oil and gas company with assets in Ukraine, has commenced drilling the shallow Vovche-2 well on the Bitlianska license (Lviv region), the company has reported on the website of the London Stock Exchange (LSE).
Cadogan said that the well is anticipated to take 20 days to drill and will then be put on production if successful. The well is designed to test the potential of satellite prospects around an established, old oil field.
A heavier rig is being selected to drill the Blazh-10 well on the Monastyretska license (Lviv region) as planned at a depth of about 3,500 meters. The well is expected to spud in November and is anticipated to take three months to drill, the company said.
The Vovche-2 well and the Blazh-10 well fulfil the company’s remaining commitments on the Bitlianska and Monastyretska exploration licenses, a prerequisite to convert them into production licenses.
PJSC Ukrgazvydobuvannia has signed contracts with Xinjiang Beiken Energy Engineering (XBEE) and Zhongman Petroleum and Natural Gas Group (ZPNGG) to drill 36 wells for UAH 4.032 billion. According to a report in the ProZorro e-procurement system, at the end of July the contract with ZPNGG for UAH 723.52 million was signed (lot 7), and the contract with XBEE for UAH 3.308 billion (lots 1-5) was signed at the end of August.
The company rejected the proposal of Energofinance LLC for lot 6 and plans to sign a contract with XBEE for UAH 776.991 million.
As reported, Ukrgazvydobuvannia announced a tender for drilling 42 more wells at the end of December 2017. The tender was held early February.
The strategy of the company until 2020 envisaged the increase in gas production from 14.5 billion cubic meters in 2015 and 2016 to 15.2 billion cubic meters in 2017, 16.5 billion cubic meters in 2018, 18.3 billion cubic meters in 2019, and 20.1 billion cubic meters in 2020.
