National Joint Stock Company “Nadra Ukrayny” manages Ukraine's state geological enterprises and has explored 350 oil and gas deposits. However, Ukraine's energy industry requires legal and tax reforms to attract more investment for developing conventional and unconventional reserves. Three new investment projects were proposed: 1) Developing the Oleska unconventional gas block in Western Ukraine, 2) Providing state-guaranteed loans for seismic surveys and exploration drilling of 7 new areas, and 3) Beginning oil shale production at the large Boltysh deposit and constructing a new power plant. These projects could significantly increase Ukraine's energy independence if the new government implements reforms to support the country's energy industry.

1. UKRAINIAN ENERGY FORUM
Kyiv. Ukraine, March 3-5, 2015
SPEAKER: PETRO GOLUB,
General Director of Ukrainian Geological Scientific Center
(‘Ukrnaukageotcenter), Poltava city
GEOLOGICAL EXPLORATION IN UKRAINE
CURRENT STATE AND NEW INVESTMENT PROJECTS FOR ENERGY INDUSTRY
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2. National Joint Stock Company “Nadra Ukrayny”
was founded in 2000 by merge of 11 state
geological enterprises with the purpose to increase
efficiency of geological enterprises management,
to meet the state needs for mineral resources, and
to promote investments in prospecting and
exploration.
The Company founder is the Cabinet of Ministers
of Ukraine. The Company’s 100% stock capital is
controlled by the Government.
Employees of these enterprises explored about
350 deposits of oil and gas, having formed the
mineral raw-material base where both state-owned
and private enterprises produce 95% of
hydrocarbons of Ukraine.
ABOUT US
The Cabinet of
Ministers of Ukraine
Ministry of Ecology
and Natural
Resources of Ukraine
State Geological and
Mineral Resources
Survey
Nadra Ukrayny
NJSC
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3.  Whole range of works for oil and gas
exploration, prospecting and drilling;
 Search and exploration of minerals, potable
and mineral water, ores (including uranium
and gold), natural stones, construction
materials, etc.;
 Operations on wells testing and study with
the whole set of laboratory researches of
core samples and formation fluids;
 Research studies, drafting of geological and
technical projects, analysis and processing of
geological and geophysical evidences,
geological feasibility study of formations and
deposits, business project drafting.
NJSC “NADRA UKRAYNY” OPERATIONS:
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4. NJSC “Nadra Ukrayny” maintains scientific and research
cooperation with international companies through its
research, development and production center
“Ukrnaukageotcenter”, which has a wide experience in oil
and gas exploration. Recently, the center has been studying
the prospects of unconventional reserves and implementing
the following operations:
 Study of geological and geophysical evidences and core
samples in order to define promising plots for carrying
out of drilling operations for unconventional deposits;
 Geological exploration works from drafting of geological
projects and support of prospecting and exploratory
drilling to geological feasibility study of formations and
deposits;
 Laboratory-based analysis of core samples, oil,
condensate, gas and other fluids;
 Gas-dynamics researches and well testing, PVT studies;
 Processing and interpretation of geophysical data;
 Computer 3D modeling of geological structure of
formations and deposits;
 Environmental monitoring with arrangement of
observation network.
OUR OPERATIONS
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5.  Due to cooperation with eni international company :
o Invested over USD 1 ml into staff training program
for modern exploration and drilling technologies,
including unconventional hydrocarbons;
o Modernized equipment for over USD 1.3 ml,
namely installed: pyrolysis plant, scanning
electronic microscope, X-ray diffraction unit for
rock properties measuring, software and others).
 Began creation of digital databases of subsurface
resources of Ukraine’s deposits with description of rock
samples from core logging facilities.
 Defended its share in joint activity at Sakhalinske field in
Ukraine, which potential amounts to 15 billion cubic
meters of gas and 3.5 million tons of oil and gas
condensate.
 Completed liquidation of worn-out drilling equipment and
developed the optimal program of its modernization.
In 2014, NJSC “Nadra Ukrayny”:
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6. Zhuzhelyanska area
Debeslavetska area
Lviv basin – one of most
promising European
reservoirs for exploration
and production of
hydrocarbons, including
shale gas.
PART OF NADRA UKRAYNY NJSC IN WESTGASINVEST LLC
Shares of partners:
1) Nadra Ukrayny NJSC – 34.99% – (blocking
stake for key questions);
2) Cadogan Ukraine Holdings Ltd – 15%;
3) Eni Ukraine Holdings Ltd – 50.01% –
(branch company of eni supermaojor)
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7. Profitability of gas production projects is below the
calculations of the Ministry of Finance, while tax rates
are the heaviest in Europe for one of the shakiest
economies…
The valid law does not comply with the EEC Third
Energy Package: operators have no free access to gas
resources, have no protection against interference of
the Cabinet of Ministers in their work…
Numerous legal defects make access of oil producers
to land plots difficult. There is no modern
understanding of land usage forms… Investors are
legally unprotected…
Ukrainian legislation does not define clearly the legal
status of oil and gas wells
The rules in force are outdated and require
codification
KEY CHALLENGES IN OIL AND GAS INDUSTRY
American Chamber of Commerce in Ukraine
provided its advisory opinion (40 pages) concerning
reforming of the oil and gas industry of Ukraine.
We are waiting for the Parliament decision.
Stabilization of taxation terms
of hydrocarbon production in
Ukraine
Adoption of a new law on gas
market
Land legislation reform with
regard to requirements of the
oil and gas industry
Reformation of procedure of
oil and gas well registration
Adoption of new rules of oil
and gas deposit development
SHOULD BE DONE:ARGUMENTS:
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8. 39.4
14.3
8.5
5.0
11.6
0
10
20
30
40
TOTAL: 39.4 Tcm, including:
- Shale gas – 14.3 Tcm
- Central basin gas – 8.5 Tcm
- Tight sandstone gas– 5 Tcm
- Coal bed methane (CBM)– 11.6 Tcm
RESERVES OF UKRAINE
1.18
5.6
0
1
2
3
4
5
6
Billiontons,oilequivalent
Explored Projected
reserves reserves
Scientifically proven projected resources of
unconventional hydrocarbonsConventional hydrocarbons
CONVENTIONAL AND UNCONVENTIONAL HYDROCARBONS IN UKRAINE
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9. NEW ENERGY PROJECTS
FOR UKRAINE’S GEOLOGICAL INDUSTRY
PROJECT 1.
Unconventional hydrocarbon deposits of Western Ukraine1
2
3
PROJECT 2.
Government guaranteed credit financing of new oil and gas
deposit exploration. New license areas for conventional oil and gas
PROJECT 3.
Oil shale debut of Ukraine: oil shale production and power station
at Boltysh reservoir
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10. PROJECT 1
MAJOR OIL & GAS SWEET SPOTS IN WESTERN UKRAINE.
OLESKA BLOCK.
The Oleska block is situated in Western Ukraine in Precarpathian Oil & Gas geological province. In 2012
it was offered by Ukrainian government for tender for elaboration of shale gas reservoirs. Chevron
company has got a license area and signed a PSA in November 2013 for 50 years term.
By 2015 Chevron withdrew from Shale projects in Poland and other European countries. Now this area is
available for other investors and remains one of the most wanted business opportunities for both
conventional and unconventional oil and gas exploration and production in Ukraine.
PROJECT INDICES:
 Land lot square – 6400 km2 (whole or partial)
 Depth of productive layers: from 2000 to
4000m
 Target layer: Lower Silurian black marine
shale, thickness 200-500 m
 Products: shale gas, small amounts of
conventional gas, crude oil.
 Estimated reserves – (gas) 1.5 trillion m3
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11. PROJECT 1
MAJOR OIL & GAS SWEET SPOTS IN WESTERN UKRAINE.
CHERNIVETSKA BLOCK.
The Chernivetska block is located in Western Ukraine, administratively - in Storozhinetskyi and
Glybotskyi rayons of Chernivetska oblast. In tectonic sense it belongs to Lviv Paleozoic deflection, in
petroleum sense – to Precarpathian Oil&Gas province. This block offers promising business
opportunities for both conventional and unconventional oil and gas exploration and production.
Estimated cost of additional geological exploration amounts to USD 20 ml.
ПРОЕКТНІ ПОКАЗНИКИ:
 Land area square – 1289 sq.kms , it includes
three lots: Zhadivska – 492 sq.kms, Krasnoilska –
347 sq.kms and Storozhinetska – 450 sq.kms
 Depth of productive layers: from 800 to 4000 m
 Target layer: low-permiable collectors of
Paleozoic sediments (Cambrian, Silurian,
Devonian);
 Products: shale gas (reserves should be
estimated), some amounts of conventional gas
(1.8 Bcm) and crude oil (0.2 Mmt).

12. № DESCRIPTION UNITS QUANTITY
1 Project expenses from guaranteed loan USD ml 300
2 Forecast of reserves increment:
Oil and gas condensate Mmt 93,94
Natural gas Bcm 127,1
3 Forecast of production for new license areas during credit period
Oil and gas condensate Mmt 27
Natural gas Bcm 5,2
4 Scope of seismic exploration:
Total profiles length kms 10 630
Number of exploration sites pcs 57
5 Scope of exploration drilling works:
Number of prospective license areas pcs 7
Project figures:
State guaranteed loan USD 300 ml for seismic, exploration
and discovery of new deposits/reserves of oil and gas in
Ukraine
PROJECT 2
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13. #
Title of
license area
Administrative
location
Oblast / Rayon
Area
square
(sq.kms)
Depth
interval, (m)
Reserves
estimation
Cost of
additional;
exploration
eq. USD ml
Gas,
Mcm
Oil
Mmt
1 Sulymivska Poltava/Shyshatskiy 88.7 4700- 5400 1059 - 6.2
2 Mayorivska
Poltava/ Poltavskiy,
Kotelevskiy, Chutivskiy
18 4800- 5000 4100 - 5.8
3 Zhemchuzhna Poltava/Gadyatskiy 13.4 4800- 5000 2690 - 6.3
4 Bolotivska Poltava/Novosanjarslkiy 37.6 2500- 3200 552 - 3.6
5 Vatazhkivska Poltava/Poltavskiy 118 5600- 5800 3091 0.27 6.8
6
Zakhidno -
Dmytrivska
Chernihiv/Bahmatskiy 198 1800- 3200 - 2.22 7.6
7 Barburska Chernihiv/Ichnyanskyi 69.4 2400- 3100 - 2.2 6.8
TOTAL: 525.1 11 492 4.51 43.1
Proposals of new license areas for exploration and drilling
of new prospective Oil & Gas reservoirs in Ukraine
PROJECT 2
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14. License area example: Mayorivska
Administrative location – Poltava Oblast, Poltava, Kotelva, Chutovo
rayons, License area square – 18 sq. kms. Tectonically, it is
situated in the central part of the axial zone of Dnieper-Donets basin.
Oil-and-gas bearing region – Glynsko-Solohivskyi.
Expected pay zone: deposits of the Serpukhov stage of lower
Carboniferous (productive horizons С-5, С-6),
Depth interval: 4800-5000 m.
Prospective resources of gas, category С3 – 4.1 Bcm (143 Bcf).
Type, scope and cost of works :
• Cost of additional seismic exploration 2D (50 km) –
USD 100,000
• Cost of prospect drilling (5050 m) and pilot commercial
development – USD 5.7 ml
Total cost of geological exploration works – USD 5.8 ml
PROJECT 3
Structure map of the reflecting
horizon Vв1
2 (С1s2)
Overview map
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15. PROJECT 3
Seismic-geological section
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License area example: Mayorivska

16. Mining of Boltysh oil shale deposit and shale chemical plant
construction
Allocation: borderline of Kirovograd and Cherkasy oblasts.
Deposit dimension: about 500 sq. kms (diameter of depression –25 kms, maximum depth 600 m)
Structure: 5 productive layers with thicknesses from 2.5 to 4.5 m and depths from 17 to 350 m
Deposit reserves: 3.8 billion tons of oil shale
Quality (specific heat of combustion): from 8.4 to 20.1 MJ/kg
PROJECT 3
Geological section
Mining of Boltysh oil shale deposit and shale chemical plant construction
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17. An extraction of oil shale in the Baltic basin is made using
both quarry and mine technology for over 90 years.
Current amount of oil shale production in Estonia is
20 Mmt per year (world’s second after China).
PLANT CONSTRUCTION INVESTMENT: EUR 220 ml
‘Enefit280’ - new shale chemical plant in Narva, Estonia.
Putting into operation by stages: 2010-2014
Capacity: 280 tons per hour or 2.4 ml tons per annum
Annual production :
 285 000 tons of shale oil
 75 Mcm of pyrolysis gas (fuel for other power plants)
 30 Billion KWh of electric power for network
FOREIGN ANALOGUE OF THE BOLTYSH PROJECT.
Oil shale mining and processing complex in Estonia
PROJECT 3
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18. INDICATIVE PERFORMANCE OF THE
BOLTYSH PROJECT:
• Raw processing capacity:
5 Mmt of oil shale/year
• New power plant electric output:
1.5 billion KWh/year
(corresponds to Kiev city power consumption
for 4 months)
• New jobs: 2500
INVESTMENT AMOUNT: EUR 840 ml
Including:
• Creation of the oil shale chemical plant
and power plant: EUR 400 ml
• Mining machines: EUR 280 ml
• Design, infrastructure building, HR
training, initial working capital etc.:
EUR 160 ml
Estimated year of Project completion: 2018
PROJECT 3
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19. POWER PLANTS OF UKRAINE
MAP OF EXISTING POWER PLANTS OF UKRAINE
with marked position of Boltysh oil shale power plant
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20. SUMMARY
 Ukraine has plenty of undeveloped hydrocarbon deposits, their production will reduce
significantly energy dependence on imported energy carriers in the coming years;
 Geological and energy industries require urgent changes to certain mistakenly adopted
laws and tax rates in order to avoid collapse of existing facilities as well as to attract
foreign and domestic investors to new projects;
 The State should provide guarantees of financial support of state-owned geological
exploration enterprises. This will enable to extend the energy potential of the country due
to development of new deposits of both conventional and unconventional hydrocarbons;
 National Joint Stock Company “Nadra Ukrayny” has major human capacities, modern
knowledge level and resources for proper management of oil and gas projects of
nationwide level and successful cooperation with international oil and gas companies;
 Development of suggested investment projects of production at Oleska field, several new
oil and gas deposits as well as shale oil production at Boltyshske deposit should prove
the positive changes in activity of the new government and enterprises of the industry.
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21. THANK YOU
www.nadraukrayny.com.ua
WELCOME TO UKRAINE
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22. KEEP CALM
AND
MAKE
OIL & GAS
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