PRESS RELEASES

DTEK Oil&Gas started execution of the new Program for deep drilling at Machukhske field in Poltava region. This Program provides for drilling of 4 exploration wells and 2 search wells for discovery of new gas deposits. The Deep Drilling Program was developed based on high-tech logging methods — wide-azimuth 3D seismic survey, high accuracy gravimetry and magnetometry, which had been conducted by DTEK Oil&Gas for the previous four years. The first target for this Program was Well 53, the drilling of which started in March. Its target depth is 5,850 m.

The well drilling is based on integrated construction management approach with participation of international service companies. Sсhlumberger provides downhole motors and LWD services. The well design is based on application of Voestalpine high-integrity casing strings (Austria) to increase the well’s structural safety. Bit services are provided by Endevour — an official NOV representative. In addition, Endevour provides mudlogging services with application of DrillLab software (Poland). During drilling the high-technology logging methods are used — cross-dipole acoustic and nuclear logs with borehole imager tool.

Well No. 53 is drilled by Belorusneft with a 450 t Bentec rig, equipped with 1600 HP mud pumps, 2000 HP drawworks and TD-500-HT Top Drive to increase the drilling rate. The drilling rig is equipped with 1050 atm BOPs designed for drilling in fields with abnormally high formation pressures and temperatures (this is the case for Machukhske field).

Igor Schurov, DTEK Oil&Gas CEO: Machukhske field is one of the most challenging fields, not just in Ukraine, but globally, from the point of view of geological conditions. For 4 years, we had consistently invested in studies of this area for planning of deep drilling for field development and exploration of deeper horizons. The total amount of investments into Machukhske field research was over 300 million hryvnas. Our long-term objective for this area is to shift to deeper formations over 7 thousand meters, where nobody in Ukraine has ever produced gas before. This, no doubt, will be a significant contribution to the energy independence of Ukraine.