Hawkley Oil & Gas (ASX:HOG) has entered into a binding agreement to sell its producing Ukraine oil and gas operations to Black Star Petroleum (ASX:BSP) for 600 million BSP shares.
The Sorochynska 201 well in the Sorochynska Licence produced an average 2.2 million standard cubic feet of gas and 49 barrels of condensate during the 2014 financial year.
Hawkley will distribute the BSP shares directly to its shareholders.
The sale is subject to the standard conditions including due diligence, Black Star obtaining all regulatory approvals as well as shareholders of both companies approving the transaction.
Hawkley’s wholly owned subsidiaries Janita Global Limited, Ukraine Investments Pty Ltd, Ukraine Gas Investments Pty Ltd and Prime Gas, which are the subject of the agreement, hold the Sorochynska, Stoliarovska and Chernetska licences.
The company has been reviewing new opportunities within Ukraine, Russia and other FSU countries along with continuing efforts to secure new business opportunities in Myanmar and the wider Asian region.
It is currently considering two specific corporate transactions with the aim of providing diversification and a new direction for the company.
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