Hawkley Oil & Gas (ASX:HOG) has acquired 100% of new licence area in the Dnieper-Donets basin in Ukraine that has total unrisked prospective recoverable resource of 193 billion cubic feet of gas equivalent.
The 20 year Stoliarovska production licence was acquired from Ukrgeoinvest for a total consideration of US$2.6 million and was funded in cash.
The licence covers an area of some 47 square kilometres and is located on the southern flank of the South Afanasivska structure, down dip of the South Afanasivska oil and gas field where there is oil and gas production from several levels in the Carboniferous (Visean and Serpukhovian) and up dip from the Anastasivska gas field.
Both fields have been in production for more than 25 years.
Three possible plays including stratigraphic channel play of Serpukhovian age; fault closures on downthrown side of normal faults and fault closers below reverse faults have been identified.
The Ukrainian State carries prospective resources of 89.7 billion cubic feet of gas and 10.4 million barrels of oil for the fault closures alone.
An additional stratigraphic trap has been identified in a Serpukhovian (Middle Carboniferous) channel body which has the potential to contain a prospective resource of up to 42Bcf gas and the charge and presence of reservoir is considered to be extremely low risk.
The licence area is covered by a 2003 vintage grid of 2D seismic data. In order to further exploration there, Hawkley will acquire additional seismic data to mitigate structural risk and identify optimal well locations.
The reservoir objectives are estimated at depths between 2800 metres and 3400 metres, which is significantly shallower than Hawkley’s other permits and has associated significant potential for reduced drilling times and costs.
They had a cash balance of $4.84 million at the end of last quarter.
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