Cossack Energy Ltd., which has assets in the North Carpathian oil and gas province in Ukraine, said it has been approached by multiple third parties that have shown interest in farming into its 100% owned Limnytska license in the Ukraine.
The company is able to farm out its work commitments while still retaining a significant free carried interest, because it owns 100% of the Limnytska license, according to a news release. While these farm-out discussions continue, the company is also conducting due diligence on several additional value accretive license acquisition opportunities in the region to add to its oil and gas license portfolio.
As part of its previously announced work program on the Limnytska license, Cossack has signed a contract with Ukregeophizyka, a locally-based experienced seismic contractor to acquire and process approximately 130 km (81 miles) of 2-D seismic over its license, according to the release. The program will commence almost immediately, as the contractor has already arranged the necessary land access and government and local shire approvals.
The seismic program has been designed with the assistance of RPS Energy to delineate the shallow and deep prospects identified by the Soviet era seismic data that was utilised in an Independent Geologist’s Report prepared by RPS to estimate a total mean recoverable prospective resource in excess of 800 Bscf of gas, the release said. The seismic contract also includes the reprocessing and interpretation of historic seismic material which is available in house with the contractor.
The acquisition of new, modern seismic data will be of significant value to the company in its ongoing farm-out discussions, Cossack said. In addition, it will assist with defining the exact alignment of the proposed new exploration well into the shallow reservoir which is anticipated to be drilled in the second half of 2014. The company is hopeful that the enhanced seismic data will also lead to a resource upgrade due to the formation being better defined.
Processing and interpretation of the data is scheduled to start as soon as suitable data is available from the field and the full report is expected to be completed in 1Q 2014. The company will update shareholders further with progressive reports as the seismic data is received from the field and as it advances its other exploration, farm-out and acquisition activities.
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