The Sorochynska Licence, which is 100% owned and operated by Hawkley, is located approximately 320km east of Kiev in the Poltava region of Ukraine, 3km to the west of Velyki Sorochynska village.
The area has a developed gas transportation infrastructure and in March 2013, Hawkley completed the acquisition and commissioning of its wholly owned gas plant which handles current production from Sorochynska with capacity to handle future additional production from the licence. Operatorship of its own gas plant provides the Company with logistical benefits as well as significant cost savings from the 3rd party gas plant model used by Hawkley prior to this initiative.
In April 2012, the licence was converted from an exploration licence into a 20 year production licence.
The Sorochynska Licence is located on the southern slope of the Malo Sorochynsko-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, B19and 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’s Sorochynska Well-201 was producing from the B18b reservoir in a fault-bounded trap located in the eastern part of the licence. Production commenced on February 17 2011 and ceased prematurely in December 2014. Well-201 has produced a total of 5.63 Bcf and 172,887 barrels of gas and condensate respectively during that time.
In April 2012, Hawkley commissioned Moyes & Co to carry out an independent Resource assessment of Sorochynska the highlights of which are as follows:
- Mean Contingent Resources of 248 Bcf gas and 7.2million barrels condensate in the Visean Sandstones.
- Mean Prospective Resources of 168 Bcf and 3.5 million barrels condensate in the B24/25 carbonate reservoir.
- Contingent Resources identified in the B-16, B-17, B-18, B-19 and B-22 Reservoirs.
- Log analysis of previous wells in the three major fault blocks in the Licence indicate the B-19 Reservoir interval could be saturated with hydrocarbons with varying degrees of reservoir thickness.
- Apparent additional pay in B-18 Sands in blocks other than the currently producing block
- Significant Mean Contingent Resources of 113 Bcf in the B19 sand in the East Block
In September 2012, Hawkley successfully completed the drilling of the second well on the Licence – Sorochynska#202. The well successfully identified hydrocarbons in the Lower B19 as well as the two additional sands which currently have no resources or reserves assigned to them representing a significant opportunity for further upside from the Licence.
In January 2013, Well-202 underwent testing operations with encouraging initial results however attempts to bring the well on line from the Upper B18 sands , have so far proved unsuccessful due to poor reservoir development at this location. In April 2013, the Company therefore announced that it would focus on the production potential of the Lower B18 sands which produced some condensate and light oil with associated gas during earlier testing.
Appraisal of the Lower B19 sands will be the subject of future appraisal drilling activity.
Sorochynska is a quality asset and provided the Company with significant cash flow during its operation and the Company believes that the Licence has considerable upside potential through further exploration and appraisal drilling.