The Vespen company specializes in oil and gas production, in this context it has a permition for oil production at the Skripalivsky site. Location: Romny district of Sumy region. The area of deposits is 76 sq. km. According to the assessment of the Skripalovsky site, its development with capital investments is 14.8 million USD; net income of $ 24.7 million. The total payback period with the gradual development of resources will be 4 years. It is planned to start from the existing Yukhtinskaya-1 well, with sidetracking, the total amount of necessary investments: 2.7 million USD before receiving the product. Project life: 25 years.
Finance and Valuation
There are no technical or technological difficulties in the restoration of the Yukhtinska-1 well; in 2019, an appropriate project was developed to restore the exploratory directional well. To implement the above project, the following documentary support and financing is required:
1. Development of a working draft land management for the restoration of disturbed lands on a land plot - 280.0 thousand UAH;
2. Coordination of this project in the Department of Ecology and Natural Resources and the State Geocadastre - 336.0 thousand UAH;
3. Preparation of a report on the environmental impact assessment (EIA) of the planned activities of Vespen LLC for drilling, overhaul and operation of the Yukhtinskaya-1 well - 300.0 thousand UAH. (Its approval is about 300.0 thousand UAH);
4. The completion of side-hole drilling in the Yukhtinska-1 well in accordance with the developed project is 68.1 million UAH, the completion time is up to 4 months;
5. Geophysical and perforation works - up to 2.0 million UAH. Total: $ 2.7 million until receipt of the product. Note: The specified pricing policy is based on the results of a study of similar market offers and a tender for price proposals of potential contractors.
According to the degree of geological exploration, the oil resources of Skripalivskaya area belong to the group of promising ones. The density of carbon resources in the area where the area is located is more than 50 thousand tons of fuel equivalent per square kilometer. In total, for prospective deposits, the initial total prospective oil resources calculated as a whole by the volumetric method are 2,686.0 thousand tons.
According to the PRMS methodology, the potentially recoverable oil reserves and resources of the Skripalivsky site were estimated, the geological probability of success was estimated, and a feasibility study was drawn up. In the case of stable commercial tides of production, it is necessary to develop an option for the simultaneous operation of several horizons (at least 5 wells), which will significantly improve the economic indicators of development of the site’s resources. Given the positive economic development indicators, Skripalivsky site can be objectively assessed as one of the best investment facilities at present.
After the restoration of Yukhtinskaya well No. 1, it is necessary to test the remaining horizons.
In case of obtaining positive results of the first drilling phase, in order to improve the geological model of the area, expand the resource potential and minimize geological and technological risks, 3D seismic surveys within the Skripalivsky area are recommended.
The cost of these works is: 560.0 thousand / sq. km x 180 square meters km = 100, 8 million UAH., lead time - up to two months. The cost of drilling a new well at about 3,500 m (full construction) is currently about 5.0 million USD (taking into account the solution of land and lease issues, drawing up development of all necessary projects and their coordination etc.).
Studying and detailing the geological structure of the bowels of the Skripalivsky area will make it possible to expand the resource potential.