HAWKLEY OIL & GAS - ASX: HOG

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Description

Hawkley Oil & Gas (Hawkley) is an oil and gas development company with 100 per cent owned assets in the Dnieper-Donets Basin, the most prolific gas basin in Ukraine.

The Company made its debut on the ASX on 29 June 2010 following completion of a reverse takeover of the former biotechnology company Incitive Limited (ASX: ICV) and a successful $5.5 million capital raising. Hawkley is rapidly progressing the development of its two premier gas condensate assets, the Sorochynska and Chernetska projects. With first production from Sorochynska expected in Q1 2011, Hawkley is poised to capitalise on strong local demand for gas.

Sorochynska Project

The Sorochynska project is located approximately 320km east of Kiev in the Poltava region of Ukraine, 3km to the west from Velyki Sorochynska village.

The area has a developed gas transportation infrastructure. Within 7km of the license is a new gas plant that is already connected to the main trunk line. There is gas processing infrastructure in close proximity to the license.

The license is an exploration license which includes the rights for pilot production (on a commercial basis) prior to obtaining a production license. The license terms are that geological studies are to be undertaken and one well is to be drilled within the license area. The Sorochynska project license 3003 (100 per cent owned) area size is 69.2km2 within areas B18b & B24/25.

The Sorochynska project is located on the southern slope of the Malosorochynsko-Radchenkivske structural zone in the central part of the Dnieper-Donets depression. It belongs to the Glynsko-Solokhyvske oil-and-gas bearing sub-basin. The Sorochynska field has at least two gas-bearing horizons which have been tested (B18b and B24/25) in the Visean sandstones of the Lower Carboniferous. The B18b reservoir is located on the northern slope of a monoclinal block. The reservoir is a stratigraphic pinchout, broken into separate tectonic blocks bounded by faults with amplitudes of 10-50m. Within the field, two wells (#469 and #110) produced 7.7bcf of gas and 227,000bbls of condensate. Both wells had mechanical failures. Hawkley is currently drilling a twin with Sorochynska Well #110 to access the remaining estimated reserves in the B18b horizon.

Sorochynska is Hawkley’s first production asset in Ukraine, with completion of Sorochynska Well #201 currently underway. The well is located within 300m of Sorochynska Well #110 which produced in the late 1980s. The Company expects that completion of a successful well would provide flow rates similar to those seen in Sorochynska Well #110 in the region of 4.0mmcfgpd and 150stbcpd. Sorochynska Well #201 lies in close proximity to gas processing and transportation infrastructure. Hawkley is currently finalising access to the international pipeline through a local gas plant.

Chernetska Project

The Chernetska project is located approximately 300km north east of Kiev in the Talalayvskiy district of the Chernigiv region of Ukraine, about 2km to the southeast of the village of Chernetska.

The area has a developed gas transportation infrastructure. A network of pipelines that are part of the United Energy System of Ukraine pass through the license area. The license is an exploration license which includes the rights for pilot production (on a commercial basis) prior to obtaining a production license. The license terms are that reprocessing of the seismic data studies are to be undertaken and one well is to be drilled within the license area.

The Chernetska project license 2982 (100 per cent owned) area size is 104.6km2 within areas B21/22, B24/25, B20. The Chernetska gas-condensate project is located in the northwestern part of the Dnieper-Donets Basin in the Glynsko-Solokhyvske oil and gas bearing sub-basin.

The Chernetska field contains three hydrocarbon bearing horizons (B20, B21/22 and B24/25) in the Visean sandstones and limestones of the Lower Carboniferous. Well Slob #321 intersected oil in the B20 horizon near the oil-water contact. Recent seismic studies have shown a three way up dip fault bounded reservoir that is expected to contain up to 4.8mbbls of oil.

It is planned that the first well (Chernetska Well #1) will target the B20 oil horizon. The B20 reservoir has a target estimated to contain up to 4.8mmstb of recoverable oil. There are also untested oil shows in the B21 and B26 horizons. The planning of the construction of Chernetska Well #1 is well advanced and will begin as soon as possible after Sorochynska Well #201 in the Sorochynska License is brought on-line.

Mine For

oil, gas

Location of operation(s)

Ukraine

Address

45 Vetnor Ave
WEST PERTH, WA, Australia

Phone

(61 8) 9429 8803

Email

Website

http://www.hawkleyoilandgas.com/

Last Updated

2/5/2011