Tysagaz LLC, subsidiary of Cub Energy Inc., received the new Stanivske production license with additional acreage in western Ukraine, increasing the original 22,000-acre exploration license by 41%.
The new Stanivske production license covers about 31,000 acres, parent company Cub Energy Inc. said Dec. 28.
The expanded Stanivske license was awarded on Dec. 23 through a special permit by the State Service of Geology and Mineral Resources of Ukraine, authorizing full industrial production from the Stanivske license for a 20-year term, during which Cub Energy can carry out E&P activities, the company said.
The new production license replaced the previous five-year special permit for exploration, which expired on Dec. 25, 2015.
Cub Energy acquired a 45-square kilometer 3-D seismic program on the original Stanivske license in 2013.
A prior operator discovered natural gas on the Stanivske license in 1990 with the drilling of the Yab-2 well. There is currently no production nor any reserves associated with this field, the company said.
To fund exploration and development on the license, Cub Energy is considering potential joint venture partners.
Cub Energy Inc. has offices in Houston, Calgary, and in Ukraine.