Cossack Energy in Farm-Out Negotiations
Signs Seismic Program Contract for its 100% Owned Limnytska Licence in the Ukraine
– Cossack Energy is in discussions with multiple well-credentialed parties on the potential farm-out and/or cornerstone investment in its 100% owned Ukrainian assets and further licence acquisition opportunities in the region.
– The Company is conducting due diligence on several value accretive licence acquisitions.
– Highly experienced Ukraine seismic service provider has been contracted to acquire and process 130km of 2D seismic on the Limnytska Licence in the Ukraine to enhance the value of the identified prospects and assist in farm-out discussions.
– The Seismic Program has been designed to confirm the geological structures estimated to contain a total mean prospective recoverable resource in excess of 800 Bscf1 of gas (independently estimated by RPS Energy).
– Seismic data acquisition is to start immediately with results to be progressively received and interpreted with a revision of the resource potential expected in the first quarter 2014.
Cossack Energy Limited (“Cossack”), the oil and gas explorer with assets in the world class North Carpathian oil and gas province in Ukraine, is pleased to update the market with the news that it has been approached by multiple third parties that have shown interest in farming into its 100% owned Limnytska Licence in the Ukraine. Because Cossack owns 100% of the Limnytska Licence, the Company is able to farm out its work commitments while still retaining a significant free carried interest. While these farm-out discussions continue the company is also conducting due diligence on several additional value accretive licence acquisition opportunities in the region to add to its oil and gas licence portfolio.
As part of its previously announced work program on the Limnytska Licence Cossack has signed a contract with Ukregeophizyka, a locally based and highly experienced seismic contractor (“Contractor”) to acquire and process approximately 130 km of 2D seismic over its Licence. The program will commence almost immediately as the Contractor has already arranged the necessary land access and government and local shire approvals.
Cossack’s Managing Director, David King said “We are very pleased to report that the first step in the Company’s exploration program on the Limnytska Licence is about to commence and that this has been achieved in line with the schedule and budget that we presented to our shareholders and the broader market. We look forward to receiving the results of the 2D seismic survey and progressing towards our maiden drill program in 2014”.
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 Bscf1 of gas. 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 and it will also 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 first quarter 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.
1 Refer to the Independent Geologist’s Report compiled by RPS Energy Services Pty Ltd as announced on 11 July 2013 which can be found on the Company’s website under the “News & Media/Company Reports” tab at www.cossackenergy.com .
The Company is not aware of any new information or data that materially affects the information included in the relevant market announcement or the material assumptions and technical parameters underpinning the estimates in RPS’s report.
ISSUERS OF NEWS RELEASES AND NOT OILANDGASPRESS.COM ARE SOLELY RESPONSIBLE FOR THE ACCURACY OF THE CONTENT.
Public relations, press release distribution service, investor relations, SEC filing, regulatory news,upstream, downstream,corporate announcements,technology developments and political news
www.oilandgaspress.com – The ‘one stop shop’ for global Oil and gas press releases!!!
Email: firstname.lastname@example.org to let us know about your events and we’ll list them free of charge. Advertise your company’s services and reach thousands of oil and gas industry executives and professionals