Link to Ukraine Energy site: http://ukrainian-energy.com/news/company_news/144/
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Hawkley Oil & Gas Limited announced that the drilling of Well #1 on the Company’s Chernetska License in the north east part of the Dnieper Donets Basin started on 5 May 2011.
Chernetska Well #1 is an appraisal Well designed to test a number of oil and gas flows that were encountered in a previous well drilled in the 1980’s – Well #321.
Well #1 will test three oil and two gas zones, one of which is a shale gas horizon. These targets, encountered in Well #321, are shown in the image below.
Oil zones:
Well #321 encountered three oil zones – the B-20, B-21 and B-26 horizons. The B-20 horizon was the only zone that was previously tested. In an open hole test, the Well flowed at 920 bopd. The Well was subsequently produced at a steady state of 640 bopd before watering out. The B-21 and B-26 horizons encountered oil shows but were never tested. Reprocessing of the seismic data has shown that there is an up dip structure that has a three way closure that could provide the trapping mechanism for the oil.
Gas zone:
Well #321 also encountered two very large gas zones, in particular a 90-metre section of the B-24/25 limestone, a prolific producer of gas in the Dnieper Donets Basin. Historic wells across the Chernetska licence have flowed gas on open hole tests at commercial flow rates. Hawkley is currently planning to drill one or more further appraisal wells in order to fully understand the potential of the reservoir. Independent reports indicate over 250bcf of (unrisked) recoverable resources in the B24/25 horizon alone.
Shale gas zone:
Immediately above the B-24/25 horizon is an extensive thick high-pressure un-named shale horizon. This shale-gas horizon occurs throughout the license. In Well #321, it was 82 metres thick. Thicknesses in excess of 100 metres has been seen in other wells on the license.
Hawkley CEO Richard Reavley said the Company has engaged a well known and respected drilling contractor and has added additional pumping capacity to the rig as well as more efficient mud handling and mud cleaning equipment. ‘We expect the well to take about 5 months to reach the targets,’ he said.
About Hawkley:
Hawkley Oil & Gas is an oil and gas exploration and production company with 100 per cent owned assets in the Dnieper-Donets Basin. 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 and a successful $5.5 million capital raising.
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Chernetska has consistently being referred to as an appraisal well and confidence in success oozes from HOG (Dec o announcement) and various reports:
1. http://www.hawkleyoilandgas.com//media/articles/Investor-Relations---Reports-and-Presentations/20111129-Investor-Presentation-194/Investor-Presentation-Nov11.pdf
2. http://www.hawkleyoilandgas.com//media/articles/Investor-Relations---Reports-and-Presentations/20111108-DJ-Carmichael-research-note-192/DJ-research.pdf
Clearly current market mood and slow progress at drill site have lowered our SP launch pad but having bought in @ 20 - 23c, I can be patient a while longer.
MS
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