JV Poltava Petroleum Company (PPC) has accrued UAH 325.3 million in royalty for 2020, which was 57.5% of the 2019 figure (UAH 564.9 million), PPC said in a press release on Tuesday.
“Lower demand and falling prices for hydrocarbons led to a reduction in the company’s drilling program, which led to a decrease in production, and, accordingly, a decrease in rental income. So, in 2019 JV PPC counted UAH 564.9 million in royalty, which is almost twice more than in 2020,” the company said.
As reported, the company in 2020 reduced gas production by 15% compared to 2019 – to 238.9 million cubic meters, oil and condensate by 5%, to 45,600 tonnes.
At the same time, in 2019, PPC increased gas production by 55%, oil and condensate – by 41%.
Since the beginning of 2020, PPC has drilled three new wells, drilled two sidetracks and seven workovers.
JV Poltava Petroleum Company is a Ukrainian-British joint venture established in 1994 and is a subsidiary of JKX Oil & Gas Plc.
Poltava Petroleum Company, a subsidiary of British-based JKX Oil & Gas plc, has successfully completed drilling the third (IG142) well since the beginning of the year (Ihnativske field), having received an average daily production rate of 152,000 cubic meters of gas and 709 bpd (barrel per day) of oil and condensate, JKX reported on the London Stock Exchange’s website.
The company said such results had significantly exceeded expectations.
“This is the fourth successful new well drilled by the Ukrainian subsidiary of JKX, Poltava Petroleum Company, since the approval of the five-year development plan,” the report says.
Poltava Petroleum Company is one of the largest non-state oil and gas companies in Ukraine. It owns five extraction licenses (Rudenkivske, Ihnativske, Novomykolaivske, Molchanivske, Yelyzavetivske deposits) and one license for geological exploration (Zaplavska deposit).
JKX Oil & Gas is engaged in the exploration and production of hydrocarbons in Ukraine, Russia, Hungary, and Slovakia.
