JV Poltava Petroleum Company (hereinafter – JV PPC) has announced its production results for 2020.
Gas production for twelve months has amounted to 238.9 million m³, and oil and condensate to 45.6 thousand tons in 2020. The indicators show a 15% decrease in gas production and 5% in oil and condensate production compared to 2019.
We recall that last year JV PPC increased gas production by 55% and by 41% of oil and condensate.
Since the beginning of 2020, JV PPC has drilled 3 new wells, drilled 2 side wells and 7 overhauls of wells.
“In 2020, our company, like the economy as a whole, faced serious challenges: a record drop in hydrocarbon prices, as a result of the coronavirus pandemic and the Great Lockdown, affected the decline in business activity and led to a drop in demand for hydrocarbons. In the face of lockdown and collapse in oil and gas prices, JKX and PPC promptly applied an anti-crisis strategy. Thanks to the efficiency in decision-making and the professionalism of the team, we have managed to maintain the company’s liquidity. First of all, we have reduced operating expenses and adjusted our ambitious work program plans. As a result of the first, we’ve got marginality close to the pre-crisis one, which is a real indicator of the company’s work, and as a result of the second, it has been logical to have reduced production indicators. The company’s financial indicators are quite optimistic. In 2021, the company plans to implement a number of workovers and drilling new wells. We are systematically working to find new assets for the sustainable development of the company “, – commented Victor Gladun, CEO of JKX Oil & Gas, the parent company of JV PPC.
We recall that in 2020, JKX Oil & Gas, with JV PPC being one of its assets, paid off all its debt obligations, making the final payment of $ 5.82 million on convertible bonds of 2013, including $ 5.44 million of the principal debt.
According to the JKX Oil & Gas plc report, the Group’s production for 12 months in 2020 has amounted to 10.2 thousand barrels of oil equivalent per day, which is 5% less than in 2019.