The core Monastyretska License combines existing oil production with significant upside potential. It is located in the Lviv region in West Ukraine.
The 25.9 Km2 exploration license 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 license has tested and produced oil from several wells in the Paleocene Jamna Formation. Today the license is 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 optimization 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 license, with the State company NAK Nadra holding a 0.17% beneficial interest and the right to receive dividends. The license validity was recently extended to November 2019, after which an application for a 20 years’ production license will be filed.
