The Elizavetovskoye exploration licence is located in the central part of the Dnieper-Donets basin and covers an area of 70sq.km. It is approximately 45km from PPC’s existing production licences.
In 2012 test production from well M-53 commenced which flowed gas and condensate and was been tied back through a test separator to the adjacent Mashivske field processing facility from where it is being exported into the Ukrainian gas pipeline network.
Well M-53 is owned by the state company Ukrgasvydobuvannya (“UGD”) and is being operated under a Joint Producing Agreement (“JPA”) between JKX’s wholly owned Ukrainian subsidiary, Poltava Petroleum Company (“PPC”), UGD and its agent LLC KhAS. Under the JPA, PPC receives one third of production from the well as the Elizavetovskoye licence holder.
The two shut-in production wells on the licence are owned by Ukrgasvydobuvannya, a subsidiary of Naftogaz of Ukraine, the state oil and gas company, and are tied into its production facility.
The JPA is valid for three years and, if justified by test production from well M-53, it envisages the recompletion of the two further existing wells in the Elizavetovskoye licence and the installation of a stand-alone gas treatment plant.
Thereafter, PPC can develop the field as it chooses and all production from any wells drilled by PPC will be wholly owned by PPC.
as at 31 December 2011
|Oil + Gas (MMboe)