Cadogan Petroleum announces delay in approval of production licence for Monastyretska

Cadogan Petroleum has announced that for temporary internal procedural reasons the licensing authority in Ukraine, the SGS, has not been able to provide final approval for the 20-year production licence for Monastyretska.

All intermediate approvals for the production licence, including that of the regional Council of L’viv, had been secured in due time. The exploration licence for Monastyretska expired at midnight on the 18th November.

In the intervening period, the company has started preparing the field and the wells for a temporary suspension of its production operations, which cannot continue without a valid permit. Suspension is not expected to last long and the company is ready to resume production as soon as the licence is awarded.

According to information on the Cadogan website – the core Monastyretska Licence combines existing oil production with significant upside potential.

It is located in the Lviv region in West Ukraine.

The 25.9 square kilometre exploration licence is part of the Carpathian fold belt (Skuba unit).

It is surrounded by long standing oil producing fields, including Starosambirske, one of the largest oil fields in the region with cumulative production exceeding 22 million barrels.

The Monastyreskaya licence has tested and produced oil from several wells in the Paleocene Jamna Formation.

The licence is now being produced by three wells which are all equipped with sucker rod pumps and produce an aggregate of 225 bpd. All three wells are old wells which Cadogan re-entered and on which successfully performed production optimisation operations.

The produced oil has a negligible gas and water content and so is treated locally and trucked by the buyer to the final destination.

The group holds a 99.2 per cent working interest in the licence, with the State company NAK Nadra holding a 0.17% beneficial interest and the right to receive dividends.

Source: Energy-pedia