Ukrnafta’s gas output falls 15.1% y-o-y in 1Q11, oil output by 6.6% y-o-y

Ukrnafta (UX: UNAF UK) decreased oil production in 1Q11 by 6.6% y-o-y to 522.0 ths mt, condensate dropped by 38% y-o-y to 46.1 ths mt, and gas output fell by 15.1% y-o-y to 541.8 mln m3. In 2010, Ukrnafta’s gas output declined by 17% y-o-y to 2.4 bln m3, gas condensate output slumped by 10.6% y-o-y to 269.8 ths mt, and oil output shrank by 2.2% y-o-y to 2.2 mln mt. Antonina Davydenko: A decrease in Ukrnafta’s output was expected given its lack of investment into exploration and development and lack of new license acquisitions.