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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