In 2016, British Regal Petroleum plc (part of Smart Energy Group and owner of gas-producing assets in Poltava and Kharkov regions) reinvested USD 7.3 million or 85% of funds received from operating activities into the company's development. This was reflected in the Company's financial statements published on the London Stock Exchange.
According to the 2016 performance results, the total revenue grew up by 9.8% to USD 25.7 million (USD 23.4 million in 2015). The Company's profit from its core activities before tax increased almost twofold and amounted to USD 2.8 million compared to USD 1.6 million in 2015. Due to the effect of exchange rate differences, the Company received a net loss of USD 1.3 million, which slightly increased compared to 2015 – USD 1.0 million.
As was previously reported by the Company, the average daily production of hydrocarbons at Mekhedovsko-Golotovschinskoye and Sviridovskoye gas-condensate deposits (Poltava region) in 2016 grew up by 3.7% to 1,321 barrels of oil equivalent/day (boepd) compared to 1,274 boepd in 2015. In particular, the average production by types of products was: gas – 157.228 m3/day, condensate – 41 m3/day, liquefied gas – 19 m3/day. In 2015, the respective figures were as follows: 144.783 m3/day, 44 m3/day and 21 m3/day.
The average production at Vasischevskoye gas-condensate deposit (Kharkov region) for the period from 4 July to 31 December 2016 was 82.624 m3/day of gas and 6.5 m3/day of condensate (556 boepd in total). Let us recall that in July last year Regal Petroleum acquired Prom-Energo Product, which owns a license for the development of Vasischevskoye deposit.
Currently, the operations are continuing on well no. 109 of Mekhedovsko-Golotovschinskoye deposit. In addition, in 2017, Regal Petroleum plans to continue geophysical studying of the existing seismic data and to carry out a number of well workovers. Financing of the production programs will be made using the Company's own funds.
Besides, Regal Petroleum recently signed a contract with Ukrnafta PJSC, which will potentially give an opportunity to receive hydrocarbons from well no. 2 of Sviridovskoye deposit, which had been mothballed until recently.
Smart Energy Group is a part of Smart-Holding and a management company in charge of implementing exploration projects, commercial development of the hydrocarbon deposits and alternative energy initiatives.
Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok Company (Kharkov region) and Regal Petroleum, a listed British company with assets in Poltava and Kharkov regions (Prom-Energo Product).