Regal Petroleum will pay less on its gas production in the Ukraine after the government decided to halt an emergency tax rate on the country’s oil and gas production.
The company said the Ukranain government’s 2014 decision to introduce temporary tax hikes had nearly doubled the amount of tax payable on its gas production.
The subsoil taxes increase continued through 2015 until January 1 this year when it dropped to substantially the same level prior to the emergency tax.
The new subsoil tax rates are 29% for gas produced from deposits at depths above 5,000 metres and 14% for gas produced from deposits below 5,000 metres, and 45% for condensate produced from deposits above 5,000 metres and 21% for condensate produced from deposits below 5,000 metres.
The AIM-quoted oil and gas exploration and production group has the 100% owned and operated Mekhediviska-Golotvshinska (MEX-GOL) and Svyrydivske (SV) gas and condensate fields in Ukraine.
For the year ended 31 December 2015 this was 144,783 m3/d of gas, 44 m3/d of condensate and 21 m3/d of LPG (1,274 boepd in aggregate). In 2014 it was 152,744 m3/d of gas, 52 m3/d of condensate and 21 m3/d of LPG (1,370 boepd in aggregate).
Following the commencement of production from the SV-6 well average gas, condensate and LPG production from the MEX-GOL and SV fields for December 2015 was 191,098 m3/d of gas, 46 m3/d of condensate and 21 m3/d of LPG (1,574 boepd in aggregate).
Average gas, condensate and LPG production from the MEX-GOL and SV fields for the year ended 31 December 2015 was 144,783 m3/d of gas, 44 m3/d of condensate and 21 m3/d of LPG (1,274 boepd in aggregate) (2014: 152,744 m3/d of gas, 52 m3/d of condensate and 21 m3/d of LPG (1,370 boepd in aggregate)).
Since 1 July 2015, Regal has been purchasing “wet” gas produced from the adjacent Lutsenky field and treating it through Regal’s gas processing facilities pursuant to an agreement between Regal and Pryrodni Resursy, the operator of the Lutsenky field.
In the second half of 2015, Regal purchased 4,723,010 m3 of “wet” gas and following treatment of this gas, produced 2,945,021 m3 of gas, 778 m3 of condensate and 5,957 m3 of LPG (49,473 boe in aggregate).