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UNAF 9M Oil & Gas Condensate Extraction Up 3.6% yoy, Gas 3.7%

UNAF 9M Oil & Gas Condensate Extraction Up 3.6% yoy, Gas 3.7%

11 October 2008

Over the first nine months Ukrnafta (UNAF: SELL) increased oil and gas condensate extraction by 3.6% yoy to 2.4 mln mt.  The company also increase gas extraction over the same period by 3.7% yoy to 2.5 bln cm. Vladimir Nesterenko: UNAF’s oil and condensate production growth in 9M is in line with our full-year forecast, 3.5% yoy (3.2 mln mt). 9M gas production lags somewhat behind our full year projection of 5.0% yoy. Apparently, gas extraction slowed due to an 3.8% yoy drop in the third quarter. However, we do not think the incremental impact of slower than expected gas production is material enough to affect company value.

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