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Hawkley Oil & Gas makes ASX debut after A$5.5M capital raising

Published: 21:03 29 Jun 2010 BST

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Hawkley Oil & Gas (ASX: HOG) shares commenced trading on the Australian Securities Exchange (ASX), bringing to the Australian market a new independent oil and gas company with a strong portfolio of growth assets in central and Eastern Europe.

The company made its debut on the ASX yesterday following  a successful $5.5 million capital raising and the completion of a reverse takeover of the former biotechnology company Incitive Limited (ASX: ICV). 

Hawkley joins the ranks of ASX listed oil and gas companies with development activities already well advanced at its two key gas-condensate licences in Ukraine’s Dnieper-Donets gas basin, where it is aiming to bring its first gas-condensate production well on stream this year.

The company said these production assets will provide a strong platform for Hawkley’s next growth steps in central and Eastern Europe, where it is also currently evaluating a number of corporate deals, further licence applications and investigating the potential for unconventional gas plays in Ukraine.

Richard Reavley, CEO, said he was pleased to see the company re-list on the Australian Securities Exchange following a lengthy suspension required to complete the reverse takeover of Incitive and capital raising.

“Hawkley has an extremely bright future ahead of it with two quality near-term gas-condensate production assets in Ukraine and an exciting growth portfolio, including the opportunity to secure additional conventional and unconventional petroleum assets in central Europe” he said.

The company expects the Sorochynska Licence to become Hawkley’s first production asset in Ukraine, with drilling of the Sorochynska Well #201 currently underway targeting a Proved and Probable gas resource of 13.2 billion cubic feet (BCF). 

This well, which is currently at a depth of 3,447 metres, is expected to reach its final target depth of 4,250 metres in July.

The Company is currently finalising access to the international pipeline and a gas plant located approximately 8km from the well site, to enable Well #201 to be tied in and commence production of gas and condensate.

The well is targeting the reserves and resources contained in the B18b horizon and is located within 300m of  well #110 which produced in the late 80s.

Hawkley expects that completion of a successful well would provide flow rates similar to those seen in #110 in the region of 4.0mmcfgpd and 150stbcpd.

The Company’s second near-term production asset is the Chernetska Licence, where it has lodged an application for the use of land to drill Well #1.

This well is planned to test the B-20 oil accumulation encountered in Well #321 and to test the B21/22 and B24/24 gas bearing horizons.

The B-20 reservoir has a target estimated to contain 1.7MMSTB of recoverable oil (mid estimate) and up to 4.8MMSTB of recoverable oil.

The planning of the construction of Well #1 is well advanced and will begin as soon as possible after Well #201 in the  Sorochynska Licence is brought on-line.

The funds from the company’s recent capital raising will be used to complete the drilling of Well #201, with the resultant cash flow from this well to be used to complete preparations for the well at Chernetska and pursue other growth opportunities.

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