Opportunities in Ukraine: PPC view By CEO of JV PPC Viktor Gladun

PPC:25 years of experience (video)

Milestones

• 1994 First successful private joint venture in the gas industry of Ukraine

• 1996 Received a loan from EBRD

• 1998 First 3d Seismic in Ukraine

• 2004 First horizontal well in Ukraine

• 2010 Longest horizontal well in Ukraine (1 km)

• 2011 First private gas company to build an LPG plant in Ukraine

• 2013 First multistage fracking in Ukraine

• 2017 First private gas company to start selling natural gas on electronic trading platform

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Milestones

Accomplishments

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• 80 new wells drilled

• over 150 wells repaired and put into operation

• 7 billion m3 of gas produced

• 2,6 million tons of oil and condensate produced

• $900 million taxes paid

• $8 million donated to local charity

Top-7 private O&G companiy in Ukraine; the company owns 5 production licences.

With resources 70% depleted PPC seeks new production resources.

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193 173 181

41 32 34

0

50

100

150

200

250

2016 2017 2018

Annual production

Natural Gas, mln cubic meters Oil, kilo tonns

Current situation

PPC experience on depleted fields

70% depleted We

target:

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Enhanced recovery program

83% successful

Natural production decline

No attractive new licenses available

Unsuccessful frack program of 2017

Drilling of new wells and side-tracks

Enhanced recovery projects

Cooperation with state companies

Looking for new opportunities

leased wells; 362 769;

27%

PPC WO; 147 796;

11%

Base production;

823 891; 62%

PPC Production share, boe

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Production exceeded the output figures of 2017

• 1st new well since 2015(E-308), WM-3 is being drilled

• Successful side track (103,158) and enhancement program

• Worked over 8 wells from state-owned companies

• LPG plant utilization increased from 25% to 40%

Taxes paid and social contribution

•$19 million paid taxes to central budget

•$900 thousand paid to the local budgets of Poltava

•$ 92,6 thousand for charity in Poltava region

Set trends in the industry

•Enhanced recovery from highly depleted fields

• Launched project on geological data transparency

•Transparent sales

2018 results

Recent results (Well IG103)

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• IG103 side-track drilled into isolated fault block picked from 3D seismic.

• Thickness of producing reservoir is greater than pre-drill estimates.

• Well is already profitable after less than a month of production.

• Recoverable gas from this well estimated at more than 30 MMm3 (1 bln scf)

• Average daily production to date from this well is 1,795 boepd, the last well to exceed this average in the first month of production was brought online by PPC in 2006. This suggests that there is still untapped potential in the Novo-Nikolaevske complex.

Operations outlook

PPC plans to increase production in 2019 and beyond through drilling and other activities

• 11 separate development projects are being matured.

• These projects involve the following types of activities:

• Studies

• 3D seismic acquisition

• Drilling of side-tracks and new wells – vertical, deviated and dual laterals

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Framework for growth

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Stable legislation and fiscal

policy

Auctions for new license

areas

Open access to

geological information

Cooperation with state companies

Increased share of private

companies

Opportunities for private companies

Auctions

•New licences auction

•PSA tender to be announced

Investment projects

•PEC

•Other investment projects

Services and engineering

•Demand for high quality technology

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Thank you!

www.ppc.net.ua

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