Hawkley Oil & Gas (ASX:HOG) should trade firmer after confirming that its operations in Ukraine have not been impacted by the ongoing geopolitical tensions currently being experienced in certain areas of the country.
The location of Hawkley’s Sorochynska 201 well and production facility are in areas entirely unaffected by the current situation.
As such, Hawkley continues to operate as normal, staff in the field and in the head office in Kiev are safe and well.
In addition, the gas compressor unit has now been installed at the Sorochynska 201 well, which will allow Hawkley to maximise production from the field, with the potential to increase recoveries and expected production levels.
Increased recent gas prices are also expected to have a positive impact on Hawkley's cash inflows this quarter.
Hawkley continues to pursue farm-out and joint venture agreements with suitable partners, and target suitable project participation opportunities that offer near-term revenue generation potential.
Given its robust production profile, Hawkley could present value at its current market cap of under $6 million.
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