Ukraine: Kulczyk gets Dnieper-Donets production license

Feb. 13, 2012

The Ukrainian Ministry of Fuel & Energy has formally acknowledged the conversion of the Olgovskoye license in the Dnieper-Donets basin from a 5-year exploration license to a 20-year production license, said Kulczyk Oil Ventures Inc., Calgary.

Alan Petzet

Output from a production license is not restricted, whereas production from an exploration license may not exceed 10% of volumes in place.

KUB-Gas LLC, in which KOV has a 70% effective ownership interest, operates the license. Olgovskoye is the presently the most productive of the five licenses held by KUB-Gas in Lugansk Oblast of southeast Ukraine. Gross production from Olgovskoye is 12 MMcfd to KUB-Gas, or 65% of total production from the five licenses.

About the Author

Alan Petzet | Chief Editor Exploration

Alan Petzet is Chief Editor-Exploration of Oil & Gas Journal in Houston. He is editor of the Weekly E&D Newsletter, emailed to OGJ subscribers, and a regular contributor to the OGJ Online subscriber website.

Petzet joined OGJ in 1981 after 13 years in the Tulsa World business-oil department. He was named OGJ Exploration Editor in 1990. A native of Tulsa, he has a BA in journalism from the University of Tulsa.