Ukrnafta prepares to drill two exploration wells

MOSCOW. April 10 (Interfax) - PJSC Ukrnafta is preparing a site to drill two exploration wells in Western Ukraine, Ukrainian media reported, quoting the company's press service.

According to the digital 3D geological and hydrodynamic model of the field as of January 1, 2023, the initial total reserves in the pay zones are 5.9 million tonnes of oil and 468 million cubic meters of gas.

Both wells will be inclined. The first is expected to discover pay zones at a vertical depth of 2,498-2,627 meters with a projected initial flow rate of 16 tonnes of oil per day.

The second should tap deposits at 2,502-2,647 meters with an initial flow rate of 25 tonnes per day.

The work is being carried out in-house with the involvement of third-party contractors for inclined drilling, drilling fluids and geophysical work.

Ukrnafta plans to start drilling 30 new wells this year, to buy equipment to enhance recovery and invest in updating the network of filling stations.

Ukrnafta increased production of oil with condensate by 39,900 tonnes or 3% to 1,409,900 tonnes in 2023. Production of natural and associated petroleum gas increased by 60.4 mcm or 5.8% to 1.097 billion cubic meters.

Ukrnafta has the strategic goal of doubling oil and natural gas production by 2027, to 3 million tonnes and 2 billion cubic meters, respectively.

It has a national network of 537 filling stations, of which 456 are operating. The company is carrying out a comprehensive program for restarting operations and updating the format of its own filling stations.

The biggest shareholder is Naftogaz with 50% plus one share. The Headquarters of the Supreme Commander-in-Chief ruled on November 5, 2022 to expropriate Ukrnafta shares owned by private shareholders - that stake is now controlled by the Defense Ministry.