A production sharing agreement deal has been sealed between Vanco Energy and the government of Ukraine for the Prykerchenska Block in the Black Sea. Vanco was granted the right to negotiate the first license to explore the deepwater part of Ukraine’s Black Sea. Work in the Prykerchenska Block is expected to begin immediately. The program includes an extensive 3-D seismic survey this year and deepwater drilling operations to be announced. Water depths for the blocks range from 1,640 to 6,562 ft (500 to 2,000 m). The company will focus on the Tetyaev High, in 6,562 ft (2,000 m) of water where it has identified a series of large structures. The company also reported that it has identified numerous prospects on the shallower Sudak Folded Belt. With a successful exploration program, development is expected to cost more than US $20 billion