Smart Energy Group announces its production results for 1H2020.
The total production volume by the companies of the group made up 198.7 mln m3 for natural gas, 9.5% up against the results of 1H2019 (181.5 mln m3). The Group also increased the total production volume of gas condensate up to 17.6 Kt, 9.3% up comparing to 16.1 Kt for the same period of 2019.
The Representative Office of Regal Petroleum Corporation Limited received a significant boost for production increase when well #54 in Svyrydivske field was commenced production testing in May this year. However, a decline in production rates from well #10 of Vasyshchivske field in the later part of 2019 impacted negatively the overall production of Prom-Energo Produkt. In case of further decrease of well #10 productivity to the critical level the company is planning to undertake a workover of the well to access an alternative reservoir horizon. In Q1, 2020, compression equipment was installed to increase production from Vasyshchivske field and to provide the gas preparation in accordance with the determined requirements.
LPG production increased by 9,8% up to 4.5 Kt. Last year the company produced 4.1 Kt of LPG for the same period.
“Without any exaggerations, the first half of this year turned out to be specific for all of us. The changes we can see in business and society due to the pandemic of COVID-19 haven’t impacted our production results still but they’ve caused the number of additional steps and measures we’ve taken to protect our results. The low prices for our resource have currently significant negative influence on our companies’ activities and make Smart Energy to optimize its investments in the development. Although we are still maintaining our positive production dynamics, it is getting slower and slower obviously. Without the needed funding it may turn into negative. In order to prevent this, we need rigorous and certain steps from the state in favour of the industry,” commented Sergii Glazunov, CEO of Smart Energy Group.
Earlier, in Q2, 2020, the SV-54 development well was completed, after having reached a final depth of 5,322 metres. The Group also completed successfully two workovers of wells #61 and #62 in Ostroverkhivske. Moreover, in Q2, 2020, the Representative Office of Regal Petroleum Corporation Limited completed repair of gas pipeline section between the TMSS (temporary metering separation station) and main gas pipeline, applying the technology of composite wraps that enabled to work without stops and with the guaranteed use period of 25 years.
Preparations continue for the spudding of the SV-25 well at Svyrydivske field. Meanwhile, at Vasyshchivske field, planning is continuing for a new well to explore the Vvdenska prospect within the VAS licence area.