Lelyaki – oil production in Poltava
Zhoda Investments’ subsidiary Zhoda 2001 has entered into a joint venture with Ukrnafta – Ukraine’s largest oil and gas company – regarding the oil producing field Lelyaki. Production for the year 2015 totaled 121,420 barrels of oil net to Zhoda Investments, which corresponds to 333 barrels per day, compared to 343 barrels per day in 2014, 347 barrels per day in 2013 and 328 barrels per day in 2012. Thanks to the work program with workovers, stable production levels can be maintained. Lelyaki is situated in the Dnepr-Donetsk basin near Poltava. It produces light, high-quality oil.
Development with low geological risk
Lelyaki was once one of the Soviet Union’s largest producing fields. The original amount of oil in the finding was estimated at about one billion barrels. The field has a cumulative production of about 385 million barrels of oil, which corresponds to extraction degree of 38%. Using techniques of enhanced recovery Western oil companies have reached extraction degrees over 50% for some oil fields. This shows that that the potential volumes of remaining oil may significantly exceed the currently registered reserves. At the field, there are good connections to Ukraine’s oil and gas infrastructure.
The field operator carries out a work program in order to increase the production levels. Since the properties of the field are well known, this can be achieved through cost-effective investment at low geological risk. The company is executing a program with new wells, sidetracks and workovers. In parallel, the company is planning to create a simulation model to examine how Western reservoir techniques can be used to increase the amount of oil extracted beyond the currently registered reserves. Zhoda Investments has a forty-five percent ownership in Kashtan Petroleum (which holds the Lelyaki license) via its wholly-owned subsidiary Zhoda 2001 Corporation. Ukrnafta owns the remaining fifty-five percent.
An engineering report prepared by Calgary-based engineering firm Trimble Engineering Associates Ltd., dated 30 September 2009, estimates that proven and probable reserves (2P) net to Zhoda Investments amount to 8 million barrels of oil.
In February 2017 the Lelyaki license was prolonged for a 20 year term.