BOGDAN SHOPYAK,
Sincerely, the owner of the Nadra Drilling Company

I present to you a short economic calculation with technical, environmental and tourist descriptions of the extraction of oil and gas from menilite deposits in the Carpathians.
This description is divided into several stages to compare data at different times and across different territories:

HISTORY OF OIL EXTRACTION IN STANISLAVSKYI, DROHOBYTSKYI AND
KROSNOVSKYI DISTRICTS
According to the data of the Polish Carpathian Geological Institute, in January 1939, 31176 tons of oil were extracted in Ivano-Frankivsk (then Stanislavskyi) and Lviv regions, which, in terms of annual production, is approximately 350,000 tons, and 260 million cubic meters. As of 01.02.1939, 3645 wellsites were under production and 53 were being drilled. On an average, 0.267 tons and 2000 million cubic meters of oil per day were extracted from one wellsite. Average depth of wellsites was 350 m.
Here is an example of just two sections:
During the study of the Carpathians, Ukrainian and Polish geologists, led by professor Tolvinskyi, discovered oil leaks on the surface in the Ploska River area, which subsequently led to the development of this area.
In 1914, the wellsite «Nadiia-1» was drilled with a depth of 248 meters and an influx of oil was received. In 1925 the wellsite «Nadiia-2» was drilled with a depth of 522 m, and an inflow of oil was received. In 1933 the wellsite «Mariia» was drilled with a depth of 825 m, and a small inflow of oil was received. In 1935 a wellsite «Nadiia-3» was drilled with a depth of 257 m, an influx of oil was received. In 1936, the wellsite «Zhoda» was drilled with a depth of 189 m and came out of the menilite deposits, and a small inflow of oil was received. From 1935 to 1939, 9 wellsites were drilled in the valley of the Ploska River, with depths from 189 m to 257 m, which were drilled in menilite deposits, of which they did not come out. The largest extraction was obtained from the wellsite «Nadiia-2»: - in 1936 - 360 tons; - in 1937 - 679.5 tons; - in 1938 - 805 tons.
In Boryslav on Tustanovychi in 1908, the Oil City wellsite delivered gas and oil by fountains, which was considered the most productive result for this period.
The largest administrative centers for oil production became Krosno, Boryslav, Ripne, Nadvirna.
In these regions, the distribution of land plots took place with by issuance of licenses for oil and gas extraction, and separately by lease or right of redemption of land. The owners of these land plots paid taxes to the local treasury, hired employees, were responsible for the state of the environment, infrastructure and order in their area in front of the community.
To increase the profit, the latest technologies were used, but only old ones, namely manual drilling methods, were possible on the slopes of the mountains and hard-to-reach places with small plots of land, where the menilite rocks «went out» to the surface.
Oil production was highly profitable, given the insignificant depths of the wellsites, and attendant low costs of their construction and operation. The proof is the history of the rapid enrichment of the Boryslav settlement with the transition to the status of the city, expensive buildings of licensed land owners in Drohobych, Krosno, and Nadvirna. Also, the infrastructure with communications, which have been working by this day and haven’t been readjusted, where oil and gas processing complexes were located.

ECONOMIC CALCULATION
OF OIL EXTRACTION IN MENILITE DEPOSITS
To objectively determine the company’s profit, we draw up a plan for oil production from the wellsite «Nadiia-1», with a depth of 248 m, with an approximate production of 0,267 tons / day, which is the closest to the average statistical data given in the text above:
1) We look for a «trap» of oil using the Skip-Verz technology (the work was carried out by Nadra Drilling Company and the cost was $ 442. The total extracted oil amount is 155.5 tons).
2) We analyze the obtained data with the geological one, which is available to the sub-user. We map the coordinates and analyze with the land department of the local community. We determine the owners of land plots (work was carried out by Nadra Drilling Company and the cost was $ 186).
3) We find actual mine workings and restore the direction and the mouth of the wellsite with the site for a drilling rig, employing a backfiller, 4 employees, building and metalwork equipment, trucks and cars, cement and metal (the work was carried out by the Nadra Drilling Company and the cost was $ 1650).
4) We carry out work on capital repairs of mine workings (work was carried out by the Nadra Drilling Company with a drilling machine EDD-2.5M during 3 days. The cost of work was extremely high, which forced us to stop all work and manufacture equipment, which will lead to a dramatic reduction in the cost of work. Today, such equipment is ready and the estimated cost of capital repairs will be $ 12675).
5) We exploit the mine working (the work was carried out by the Nadra Drilling Company and the cost was $ 25 / day, but without the wellsite repair, the extraction was 50 L / day, which was not profitable). After a capital repair of the wellsite, the estimated cost of extraction for 2 years will be $ 7500).
6) Construction of flowlines or pipelines. This item is for wellsites like Oil City and Kamila (the work was planned to be carried out by the Nadra Drilling Company for the wellsite «Nadiia-2»).
7) We conduct recultivation and regeneration of soils around the wellsite. Offers for the planting of a power willow, as a ground cleaner from emergency oil spills (the work was planned to be carried out by the Nadra Drilling Company, where the cleaning of the soil from oil pollution should be performed by the subsoil user under the supervision of the Nadra Drilling Company. The total estimated cost of such works is $ 2164).
The fluid that contaminates the environment, which is collected from the surrounding area or wellsite, is recycled because the moor + water + oil does not make up crude oil.
Works on the transportation of all oil from the wellsite «Nadiia-1» will be carried out by the Nadra Drilling Company at the cost of $ 2000.
8) Associated gas is collected in a tank at the main distribution point where it gets separated, and is delivered to the local community, at a minimum price, as disposal of the gas contamination of the region.
Let’s summarize the total calculation of the cost of the work performed and the cost of the extracted fluid.
1. The cost of a fluid currently is 9800 UAH \ t. = 345 $ \ t. (data is taken from the Ukrainian Universal Exchange)
2. Extraction cost from the wellsite «Nadiia-1» = 53650 $ (this calculation is made by the specialists of the Nadra Drilling Company)
3. Total expenses for oil production from a wellsite = $ 26617 (this calculation is made by specialists of the Nadra Drilling Company and executed as the sum of the paragraphs 1-5; 7)
4. Taxes from the enterprise (VAT = $ 8950, salary payments = $ 2500, income tax = $ 1775, this calculation is made by the specialists of the Nadra Drilling Company)
5. Profit of the enterprise = 53650-26617-8950-2500-1775 = $ 13808 (this calculation is made by the specialists of the Nadra Drilling Company)
6. Calculation for enterprise development for 2 years
A. 40% of profit = $ 5523 – fund for technical development and equipment depreciation
B. 20% of profit = $ 2760 - fund for the implementation of the contract on subsoil use
C. 30% of profit = $ 4142 - earnings of the enterprise
7. Calculation of the balance (rent for the extracted fluid), this calculation was developed by specialists of the Nadra Drilling Company.
P = p.5-p.6A-p.6B-p.6C = 13808-5523-2760-4142 = $ 1383
(rent = 8.9 $ \ t. = 249 UAH \ t.)
Currently, according to the Draft Law No. 5132, the rent amount per 1 ton of oil extracted from the depth till 5000m is = 2273.60 UAH.
The Nadra Drilling Company considers expedient to introduce the concept of «environmental rent», which will enable to improve the environment, infrastructure and economy in the Precarpathian oil and gas producing region.
Methods of increasing profit from marginal wellsite:
Taking into account all of the facts mentioned above, the Nadra Drilling Company offers:
1. In order to get in touch with the subsoil user and the community, we propose to unite everybody with the only task - the restoration of any methods of oil or gas combined with tourism. (At the specified time there is carried out the extraction of oil by operators of subsoil users in ancient forms, wooden containers, manual devices, etc., in addition local community promotes this action in news, Internet, European grants and etc., and the owner of the land plot himself provides a coffee shop, tavern, a viewing platform and provides services in the style of tourism (the methods of providing services are very wide and will become popular quickly, as more than 100 years ago).
2. To distribute and participate (as a worker, investor, owner and non-indifferent citizen) in the project «Boryslav museum town of oil and gas industry».

CONCLUSIONS:
All the above-mentioned technical and economic calculations are carried out according to the methods that are in the present, and are based on the data of the past century, and taking into account the materials presented at the 4th international scientific-practical conference «Subsurface management in Ukraine. Perspectives of investment», which took place on 6-10.11.2017, namely:
- assessment of the investment attractiveness of the objects of the mineral raw material base of Ukraine (Mykhailov V.A., Ph.D. in Geology, professor, Kurylo M.M., Ph.D. Geology, associate professor, Institute of Geology, National Technical University of Kyiv Taras Shevchenko National University, Kyiv city)
- assessment of stocks of unconventional oil and gas fields using statistical methods (Lari Konor, Vitalii Charkovskyi, Canada)
- investment attractiveness, competitiveness and taxation of the oil and gas industry in the countries of North America, Eastern Europe and Ukraine (Karpenko I.O., Sereda I.P., Vedenieiev O.S. - Naftogaz of Ukraine, Kyiv)
- improvement of the mechanism of redistribution of rent payments to budgets of different levels (Goral L.T., Ph.D. in Economics, prof., Perevozov I.V., Ph.D. in Economics, prof., Shyiko V.I., Ph.D. in Economics, Associate Professor, Ivano-Frankivsk city, Ivano-Frankivsk National Technical University of Oil and Gas)
- On the issue of legal provision of decentralized management of the domestic fund of mineral deposits of local significance (Matiukha V.V., Ph.D. in Technology, Sukhina O.M., Ph.D. in Economics, Kyiv city, SI «Institute of Economics of Natural Resources and Sustainable Development of the National Academy of Sciences of Ukraine»)
- a finding in the West of Ukraine promising for oil and gas sites, frequency-resonance using the method of processing satellite images (Levashov S.P., Ph.D. in Physics and Mathematics, Yakymchuk M.A., Ph.D. in Physics and Mathematics, professor, Institute of Applied Problems of Ecology, Geophysics and Geochemistry, Kyiv city, Korchahin I.M., Ph.D. in Math.Sc., professor, Bozhezha D.M., Institute of Geophysics National Academy of sciences of Ukraine, Kyiv city)
- illumination of lithological and petrophysical features of gas reservoirs of the Western region in order to increase their productivity (Fedoryshyn Yu.I., Ph.D. in Geo., Vladyka V.M., Balatskyi R.S. - researchers, Lviv Integrated Research Center of Ukrndigaz, Lviv city)
- hydrocarbon fluidous inclusions - indicator of perspectives for geological sections of the Carpathian oil and gas province (Naumko I.M., Ph.D. in Geo., senior researcher, Institute of Geology and Geochemistry of Combustible Minerals of the National Academy of Sciences of Ukraine, Lviv city)
- macro-chemical composition of surface waters of the Boryslav oilfield (Karabin V.V., Ph.D. in Geo., associate professor, Lviv State University of Life Safety, Lviv city)
- rational use of nature in resort and tourist destinations of Ukraine from the point of view of sustainable development of tourism (Babov K.D., Ph.D. in Med.Sc., professor, Bezverhniuk T.M., State Pedagogical University, professor, SI «Ukrainian Research Institute of Medical Rehabilitation and Resorts of the Ministry of Healthcare of Ukraine», Odesa city, Babova I.K., Ph.D. in Med.Sc., Odesa Regional Institute of Public Administration of the NAPA under the President of Ukraine, Odesa city)
The Nadra Drilling Company is convinced that profit can be obtained 3-5 times faster and more, using rationally all the mentioned aspects, combining them into a single business.
Take care of your health, water and energy.