We pay you our respect and are very grateful for the help you have been providing to Ukraine. You are addressed by a group of oil and gas production companies collectively referred to as Zakhidnadraservis LLC, which includes gas production companies Project-Bud PE, Nordik PE, Geo-Nadra-Invest LLC, Geo-Topo-Kadastr PE and service entities of Drilling Company Horyzonty LLC, which performs well drilling, Georozvidka LLC, which carries out 2D and 3D seismic works and Ivano-Frankivsk Institute of Geophysical Research LLC, which carries out industrial geophysical surveys in wells, and Nordik-Bud LLC construction company, which carries out works related to construction of wells, construction of gas pipelines and gas treatment facilities as well as their connection to main gas pipelines. The companies are affiliated with the Fuel and Energy Complex (FEC) Association and closely collaborate with the Ivano-Frankivsk National Technical University of Oil and Gas, which provides scientific support for the work. It represents an energy cluster practically operating in the western part of Ukraine in the Lviv and Ivano-Frankivsk Regions.

The reality resulting from Russia's aggression against Ukraine and the ongoing full-scale war that has brought great destruction, including of the energy sector in Eastern Ukraine, requires us to seek opportunities to accelerate exploration and drilling activities in the Western Ukrainian oil and gas region, which is one of the oldest oil and gas extraction regions in the world and currently has great oil and gas resource potential.

Brief background.

Industrial oil extraction in Western Ukraine began as early as 1771 in Kolomyya region (the Sloboda-Rungurske field). In 1909, Halychyna (Western Ukraine), which then was a part of Austria-Hungary, was the world's third-largest oil producer, behind only Russia and the USA.

World Wars I and II almost halted the development of the oil and gas industry in the region. During the post-war period (1950s-1960s), the Soviet Union began to actively develop exploration and extraction in the region. As a result, the largest oil and gas fields in the West Ukrainian region were discovered, namely Hidnovytske, Uherske, Bilche-Volytske, Rudkivske gas fields, Boryslavske, Bytkiv-Babchenske oil and gas condensate fields, Dolynske oil field etc. This contributed to the growth of hydrocarbon extraction, which peaked in the late 1960s at 2.86 million tonnes of oil (1967) and 12.7 billion cubic metres of gas (1969). The majority of identified hydrocarbon deposits are concentrated within the Pre-Carpathian Depression and are confined to the traditional reservoir rocks within structural-lithological traps located between 500 and 3,000 metres beneath the surface. Most of the fields are still being developed today. The remaining explored hydrocarbon reserves of the Pre-Carpathian Depression fields (according to Ukrainian State Geological Exploration Institute (UkrSGEI) estimates as of 01.01.2016) amount to more than 183 million tonnes of fuel equivalent.

In the 1970s–1980s, a number of hydrocarbon deposits at depths over 4 km were discovered in the Western Ukrainian region, namely Pasichnianske, Semyhynivske, Novoskhidnytske oil deposits, which are confined to the third stage of allochthonous structures of the Pre-Carpathian Depression as well as the significant Lopushnianske oil deposit in the native complex of the Carpathian underthrust (Chernivtsi Region), which has unambiguously proved the promising potential of prospecting for hydrocarbon deposits in the deep submerged horizons of the Pre-Carpathian Depression and the Skyba zone of the Carpathian Mountains. However, at that time in the Soviet Union the oil and gas assets in Western Siberia were being rapidly developed, while Western Ukraine remained on the side-lines, so it was impossible to study and exploit reserves in detail. During the years of independence, the same trend persisted - the lack of funding, the lack of attention to own production, gas and oil were bought from Russia. On the other hand, history may have preserved this resource potential for this exceptional wartime situation.

So, the resource potential of the Western Ukraine oil and gas bearing region is 596 million tonnes of fuel equivalent, the remaining prospected hydrocarbon reserves amount to over 195 million tonnes of fuel equivalent with cumulative hydrocarbon production exceeding 424 million tonnes of fuel equivalent. In other words, there is a great potential to increase industrial production of hydrocarbons in the region, which can meet the domestic consumption of hydrocarbons in Ukraine and their export to European countries.

Now, more details about who we are.

The group dates back to 2004 having grown from a small team of 10 to 800 employees.

Over this time, it has accumulated considerable experience in oil and gas exploration and extraction and has formed a highly professional team of geologists, geophysicists, drillers and construction workers. Today, it is a vertically integrated company covering the whole range of activities ranging from the analysis of geological materials, prospecting seismic works with subsequent data processing and interpretation up to drilling vertical, directional and horizontal wells, string fastening, industrial well surveys, construction of gas pipelines, gas treatment facilities and their connection to main gas pipelines as well as gas sales.

Our companies have experience of cooperation and joint activities in well drilling with RAG (Austria), Hydro Drilling (Italy), receiving services and cooperation with Weatherford (USA), from which two deep well drilling rigs with lifting capacity of 340 tonnes for well cementing have also been purchased, the cooperation with Halliburton (USA), Schlumberger (France), joint activities with MND (Czech Republic) have been successfully run since 2014.

For the recent 4 years our Drilling Company provided well workover services, coiled tubing operations for UkrGazVydobuvannya State Company, for Ukrnafta PJSC we have rendered services of geophysical surveying using gyroscopic inclinometer. For Expert Petroleum (Romania) we have conducted seismic surveys and well workover services, repairs of compressor stations and set-up of gas treatment facilities; we have drilled wells for Nafta (Slovakia).

Since 2016, ZNS Group has been closely collaborating with Ivano-Frankivsk National Technical University of Oil and Gas. Most of the employees are graduates of the University and they undertake advanced training courses. The Group welcomes students for work placements. Joint scientific and practical conferences are arranged. Laboratory specialists from Ivano-Frankivsk National Technical University of Oil and Gas are engaged by ZNS Group to carry out environmental monitoring activities. At the same time, we jointly develop innovative solutions and improve business processes which are an important part of the Group's activity.

Over the past few years, our Group has been among the most dynamically developing companies in the oil and gas sector in Ukraine.

Over the period from 2014 to 2021, we increased the output 20-fold (from 12.93 million cubic metres of gas per year in 2014 to 280 million cubic metres per year in 2021). In terms of gas extraction results in 2021, the Group was ranked the 5th among private gas extraction companies in Ukraine.

A special recognition can be given to a company from our group, WELL CO LLC, which participated in tender for the conclusion of an agreement on the distribution of hydrocarbons within the Ugnivska area located within the Lviv and Ivano-Frankivsk Regions with a total area of 967.44 square km, which was announced on 28 February 2019 in accordance with the Resolution of the Cabinet of Ministers of Ukraine dated 18.12.2018 under No. 1189.

According to the results of the tender WELL CO LLC was recognized as the winner and granted the right to conclude an agreement with the Cabinet of Ministers on the distribution of production for the Ugnivska area for the purpose of geological study, including development, with subsequent extraction of combustible minerals (natural gas, gas shale deposits, gas of the central-basin type, gas (methane) of coal deposits, oil, condensate) (collectively – hydrocarbons), and the execution of works stipulated by the agreement on product distribution for a term of 50 years (with the possibility of extending the term) established by the Law of Ukraine "On Production Sharing Agreements".

The Ugnivska area is located within Sokal, Mostyska, Yavoriv, Sambir, Staryy Sambir, Turka, Stryy, Horodok and Mykolaiv Districts of Lviv Region and Bogorodchany District of Ivano-Frankivsk Region. The total area of the licensed sites owned by the Group is 2,122 km2.

Information on the licensed sites is presented in Table 1.

Special permit (licence) No.	License Owner	Founder Z.Ya. Kozytskyi, ownership interest	License Expiry Date	Area (km2)
No. 4689 – Kolodnytska field	Nordik PE	100%	04 September 2035	9.4
No. 4690 – Rudnykivska field	PROJEKT-BUD LLC	100%04 September 2035	205.7
No. 4779 – Bystrytska field	Zakhidnadraservis LLC	100%	01 July 2036	16.5
No. 4884 – Mostyshche-Krekhivska field	Zakhidnadraservis LLC	100%	19 January 2038	162.3
No. 4883 – Gavrylivska field	Zakhidnadraservis LLC	100%	19 January 2038	388.0
No. 4771 – Pidhirtsivska field	GEO-TOPO-KADASTR PE	100%	24 May 2036	15.6
No. 5005 – Hrabynska field	GEO-NADRA-INVEST LLC	100%	20 October 2040	17.05
No. 6034 – Zvorivske deposit	SE UkrSpetsZamovlennia LLC	100%	19 March 2035	24.2
No. 6036 – Berehivska field	Horyzonty LLC	20%	19 March 2035	40.19
No. 6035 – Hirska field, including the Hirske deposit	Horyzonty LLC	20%	28 January 2035	41.3
No. 4688 – Bunivska field	Horyzonty LLC	20%	04 September 2035	70.4
No. 5311 – Zhukivska field	Horyzonty LLC	20%	02 December 2041	57.72
No. 5351 – Tynivske deposit	Horyzonty LLC	20%	25 January 2042	58.63
No. 6033 – Chaikovytska field	Geological Bureau Lviv LLC	20%	20 March 2035	8.3
No. 3748 – Hrabivska field	Precarpathian Energy Company LLC	20%	19 March 2042	39.0
No. 5217 – Uhnivska site	WELL CO LLC	100%	26 May 2071	967.44

Activities for this period resulted in performing of 2D seismic works over the length of 1,310 km and 3D seismic works over the area of 330 km2, drilling of 85 wells, 65 of which proved to be productive and equipped and put into operation, construction of 5 gas treatment facilities used for gas treatment and drying and equipped with compressor units, 1 oil collection and treatment facility, construction of 250 km of gas pipelines and successful completion of 16 well workovers.

As a result, 13 gas fields and one oil field were discovered (Table 2).

No. p/o	Deposit	Year of deposit discovery
1	Starobohorodchanske GD	2004
2	Pivnichno-Zarichnianske GD	2004
3	Zvorivske OGD	2005
4	Berehivske GD	2012
5	Chaikovytske GD	2012
6	Hrabivske GD	2013
7	Krekhivske GD	2014
8	Kolodnytske GD	2016
9	Bystrytske GD	2017
10	Hirske GD	2018
11	Rudnykivske GD	2019
12	Hrabynske GD	2021
13	Pidhirtsivske GD	2021
14	Dibrovske GD	2022

During the wartime, in spite of the difficulties, we have not suspended our work for a single day. At present, only 4 rigs in Ukraine are performing drilling – that is our Drilling Company Horyzonty; our company Georozvidka LLC, which is now completing works on the second licensed site, has conducted seismic works for the state enterprise UkrGazVydobuvannya. In April, we started a new Dibrovske deposit where 2 wells had been drilled. They are already connected to the main gas pipeline and yield gas at a daily rate of 120 ths. m3 each.

To sum up, in this communication we would like to show that the Western oil and gas region is still understudied and potentially promising, that our group (cluster) has the necessary human, production, scientific potential as well as opportunities and adequate licensed sites available for developing new deposits in deep structures.

We are convinced that we will discover them and then large international companies will come and Ukraine instead of being an importer will become an exporter of hydrocarbons.

Dear friends of Ukraine!

In order to quickly solve these tasks, we need your help in providing equipment (Appendix 1) such a lend-lease as for the army front line. This can help the oil and gas industry to double our output, which is extremely important for our country at the moment. This will be our common response to russia on the home front.

Best regards
Founder of Zakhidnadraservis Group of Companies	Zinovii Kozytskyi
Rector of Ivano-Frankivsk National Technical University of Oil and Gas	Academician Yevstakhiy Kryzhanivskyi
Head of Fuel and Energy Complex Association	Andrii Matolych

In order to increase productivity and speed up field seismic surveys, please help us to acquire:

• Ten SERSEL NOMAD 65 seismic vibrators of at least 27 tonnes with a frequency range of 4-5 Hz or equivalent. The equipment can be pre-owned.
• Cable-free seismic data recording system with real-time recording function (15,000 channels) and possibility of increasing the number of Wireless Seismic Inc. RT System-2 units or equivalent. The equipment can be pre-owned.
• A station and corresponding logging lift for vertical seismic profiling up to 6,000 metres survey depth with a VINCI Technologies 12-channel probe or equivalent.
  The equipment can be pre-owned.

Needed equipment to improve the efficiency of open hole and cased hole industrial geophysical surveys

Cased hole service tools
Gamma Ray
Gamma Ray Neutron CCL
Dual Detector Neutron
RIB (Radial Incremented Bond)
MFC (Multi finger caliper)
TMD3D Logging tool
TMD3D Logging tool SIGMA
TMD3D Logging tool - C/O
TMD3D Logging tool - GASAT
Open hole service tools
GR (Gamma Ray Tool)
DLL (Dual Laterlog)
AIT (Array Induction)
ML (Microlog)
MSFL (Microsferic Focused Log)
CAL (Caliper)
6- ARM CAL (Caliper)
ACT (Acoustic Tool)
CDAT (Cross Dipole Acoustic Tool)
ORI (Orientation tool)
CNT (Compensated Neutron Tool)
PDEN (Pe Density Tool)
DPL (Diplog tool)
MRI (Microresistivity Imager Tool)

Cementing fleet:

• Cementing unit
• Averaging vessel
• Cement truck
• Silo
• Unit for dry cement feeding from big bags
• Mixing water vessel
• Mobile compressor
• Motor pump for mixing water supply
• Cementing control station
• Cementing head
• Loader crane
• Towing truck
• High pressure line
• Low pressure line
• Car
• Stationary cement warehouse
• Cement slurry laboratory
• Specialised licensed software

Cement slurry laboratory equipment:

• Rotary viscometer
• Automatic variable speed digital rheometer
• Atmospheric consistometer
• High Pressure & High Temperature consistometer
• Ultrasound cement analyser
• Static shear stress analyser
• Multifunctional cement slurry tester
• Static filtration test tool
• Dynamic drainage analyser

Manufacturers: Chandler Engineering, Fann Instruments, Grace Instruments, Ofite or equivalent. The equipment can be pre-owned..

Core analysis laboratory

• Core preparation
• Core spectral gamma ray logging
• Permeability
• Porosity

Manufacturers: OFI Testing Equipment (OFITE), Core Laboratories, Grace Instrument or equivalent. The equipment can be pre-owned.

It would be practical to provide the lab equipment for cement slurry and core analysis for joint work together with Ivano-Frankivsk National Technical University of Oil and Gas which will be used for both practical production activities and scientific work.