Located in the Kharkiv region of the Dneiper Donetsk basin, PPC was awarded the Chervonoyarske East licence following Ukraine’s first open auction in December 2005. The licence covers 5.5sq.km and is valid for a period of five years for exploration and test production, following which PPC has the right to apply for a twenty year production licence. 

Prior to PPC being awarded the licence, six wells had been drilled by the Ukrainian state within the licence area, one of which produced quantities of hydrocarbons.

 Evaluation of the data purchased with the licence has revealed the potential trapping of hydrocarbons against a substantial salt block. Additional 3D seismic was acquired in 2008 which supports this interepretation and two prospects have been identified and are being assessed for drilling in 2009.