KHARKIV – Oil company Shell does not plan to extract shale gas in Ukraine as a part of the realization of a Product Sharing Agreement (PSA) on the division of hydrocarbons extracted on the Yuzovska field (Kharkiv and Donetsk regions), the company's press service told Interfax-Ukraine on June 8, 2012.
"The gas beds on the Yuzovska field are formed by compact sandstone and not shale rock," the company said, citing Chief Engineer Mykhailo Hretsky.
He said that the main differences between shale gas and compact sandstone were their depths and the methods of their extraction. Usually horizontal wells are used to extract shale gas at shallow depths (1.5-2 kilometers). Gas from compact sandstone is extracted using vertical or slope wells around five kilometers deep, he said.
"If we take into account that water bearing strata are located 100-200 meters deep, the possibility of polluting water resources during gas extraction from compact sandstone is minimum. Shell plans to drill vertical wells in Ukraine," the company said.
In May 2012, Shell won a tender to sign a PSA agreement for the Yuzovska field. The development of the field will start only after the signing of certain agreements. It is expected that drilling on the field will start in several years.
In addition, in autumn 2012, Shell and Ukrgazvydobuvannia will start drilling a wildcat well in Kharkiv region to explore gas deposits.
