Kulczyk confirms plans to double Ukraine output by 2016

Kulczyk Oil Ventures (KOV PW) plans to raise its net hydrocarbon production in Ukraine 2.2x to 40 MMcf/d by the end of 2015, Managing Director Jakub Korczak told an international energy forum in Kyiv on Feb. 27.

Kulczyk’s 2013 drilling plan includes eight new wells, including NM-2, which was abandoned earlier this month after drilling did not indicate any prospective gas-bearing zones. Management expects to reach a net hydrocarbon production of 27 MMcf/d already next year, Korczak said.

Roman Dmytrenko: Korczak’s announced production plan resembles the numbers the company presented for the first time in its investor presentation in November. But considering that the wells drilled at the North Makeevskoye license area haven’t proved to be sufficient hydrocarbon bearing zones so far, we see a high risk that the initial 2013 production targets will be corrected downward.