Ukraine: Hawkley Presses Ahead on Gas Plant

Australian-listed Hawkley Oil & Gas is pressing ahead with plans for a new gas plant in Ukraine, a move it says will aid in its production rates.

The Ukraine-focused company, which has interests in the Ukrainian Dniepers-Donets basin, says it received a final feasibility study in the beginning of this month. The company says the plant is needed to increase production from its fields, for which it currently uses a third-party plant. Maintenance on the third-party plant has "constrained" production rates, Hawkley says. The maintenance began on the 9th of April.

Current production rates for the company are announced at an average of 5.1 million standard cubic feet (mmscf) of  gas and 145 barrels condensate per day. for June. Revenue for that month amounted to AU$2.23 million.

CEO of Hawkley Richard Reavly said the plans for the company's own plant were moving ahead well.

"The plans for the construction of our own gas plant are gathering momentum and the continued production constraints caused by the ongoing  maintenance at the third party gas processing plant   underlines the rationale and importance of our plans to construct and operate our own plant," he said. "We are encouraged by the progress being made on this front."

The plant will process gas from the company's wholly-owned Sorochynska field. Production efforts continue on that field with the drilling of the Sorochynska-202 well at a depth of 3,656 metres as of the 30th of June. Hawkley says the well will "provide an additional drainage point for the B18 reservoir as well as appraise the deeper B19 reservoir which flowed gas on test in Sorochynska-469."  Results of the interpretation of 3D data taken on the field will be completed late in July.

The company says it is also analysing data from the Chernetska-1 well in the Chernetska exploration licence from which the company reported disappointing results at the end of May. The data is now being interpreted in a bid to decide whether it is worthwhile considering further testing activities with a work-over rig.