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Poltava Petroleum Company Announced 1H 2018 Operating Results

Kyiv, 30 July 2018 – JV Poltava Petroleum Company (PPC), one of the largest private oil and gas producers in Ukraine, has announced its operating results for the first six months of 2018. During the period from January through June 2018, PPC has revised its drilling programme and updated its well enhancement and workover programme. Also, the company has obtained the first results from the abandoned wells re-instatement programme, increased its LPG plant loading, and started drilling a new well – for the first time since 2015.

Due to the new programme and based on the first six months’ records, gas production has amounted to 83.6 million cubic meters with oil and condensate amounting to 17.3 thousand tonnes and LPG, in its turn, amounting to 5.1 thousand tonnes. From January through June, PPC paid UAH 243.9 million of the rental fee for gas, oil and condensate production, and UAH 12.2 million of it was assigned to local budgets.

The well workover and enhancement activities have been bringing good results. Since the beginning of the year, 5 wells from state-run companies’ stock of wells and 4 wells from PPC’s own stock have been re-instated. PPC is also preparing work programmes for the next 4 wells from state-run companies’ stock.

For the first time, PPC, in order to augment LPG production, has imported raw materials to ensure fuller loading of the LPG plant, and the load has increased from 25% to 40% as a result.

Within the framework of the regional development programme, PPC continues to support social responsibility projects. From January through June 2018, the total assigned to support and implement such projects in Ukraine amounted to UAH 1,265,553. It should be noted that Novi Sanzhary and Mashivka Raions, Poltava Oblast, were among the most successful ones with the allocated funds spent to improve the infrastructure and to enhance development of the villages, and to implement some educational projects at kindergartens and boarding schools.

“We are happy to announce that our Company has managed to achieve successful results in the first half of 2018. We placed our stakes on minimization of risks and operated relying on internal financing only without involving any external resources. As a result of the operations performed, the first six months’ EBITDA exceeds the budgeted figure by 20%, and the operating cash flow exceeds the budgeted figure by 5%. The Company has been successfully implementing the previously approved commercial strategy of product selling at transparent platforms. Due to the efficient performance of the whole team, PPC has reached a steady level of hydrocarbon production and we are going to maintain and increase it in the future”, – Viktor Gladun, JV PPC General Director, said.

Besides, according to the six months’ report published by JKX Oil&Gas, the parent company, hydrocarbon production has increased throughout the whole Group with the well re-instatement and workover operations remaining at a high level. Based on the results of the first half of 2018, JKX Group has earned USD 7.4 million profit from operations. Please visit this link to find a full version of the operational report.