Monday, March 14, 2016

Burisma intends to increase its Ukrainian gas production 50% in 2016


Company Burisma Holdings Ltd plans to increase natural gas production by 50%, or 600 million cubic meters to 1.8 billion cubic meters in 2016, compared with production data for 2015.

Burisma is the partner with Cub Energy, my Ukraine natural gas speculation, in a gas project in Ukraine that Cub owns a minority interest. It looks like the Cub share price is starting to creep up on anticipation of increases in production later this year.

In other Cub news the company was awarded additional exploration property in eastern Ukraine:

Cub Energy Inc. announces that its wholly-owned subsidiary, Tysagaz LLC, has been granted a production licence with additional acreage in western Ukraine.

The new Uzhgorod licence covers approximately 75,000 acres, which is a 50% increase from its original size of 50,000 acres. The expanded Uzhgorod block was awarded to the Company on March 11, 2016, by way of a Special Permit by the State Service of Geology and Mineral Resources of Ukraine, authorising full industrial production from the Uzhgorod licence for a 20-year term, during which the Company will be allowed to conduct both exploration and production activities.

The new production licence replaces the previously issued 5-year Special Permit for exploration, which was scheduled to expire in January 2016. The new expanded Uzhgorod licence is on trend with the discoveries in the Republic of Slovakia, which adjoins the licence on the west and the Tysagaz operated (100%-owned by Cub) RuskoKomarivske (RK) field in close proximity on the east. 

Approximately 35 line kilometre of 2D seismic data was acquired in 2013 on the original Uzhgorod exploration licence. The data has been processed and reviewed, with several potential target locations identified.

 Additional seismic, including a 3D survey, is planned prior to drilling any of the identified locations. The targeted reservoirs include the Middle Miocene Sarmatian and Badenian reservoirs found to be present and gas-bearing in the RK field. To fund the development on this new expanded production licence, the Company is exploring its alternatives, including potential joint venture partners.

 Mikhail Afendikov, Chief Executive Officer of Cub said, “The Uzhgorod production licence and expanded acreage will give us the opportunity to continue to explore and produce hydrocarbons in western Ukraine. Cub’s total acreage in Ukraine (east and west combined) is approximately 302,000 gross acres (170,000 net acres).”

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