20150731 - HOG Jun quarterly
Hawkley Oil and Gas Limited
ABN: 68 115 712 162
Suite 3 / Level 3, 1292 Hay Street
West Perth WA 6005
GPO Box 2870
West Perth WA 6872
t: +61 8 9226 3211 f: +61 8 9322 4073
e: [email protected]
www.hawkleyoilandgas.com
ASX Announcement - July 31, 2015
Quarterly Activities Report for the Quarter Ended 30
June 2015
Hawkley Oil & Gas Limited ("Hawkley" or "The Company") provides the following report on activities for the quarter ended 30 June
2015.
Business Development
Due to current financial restrictions, Hawkley is seeking potential joint venture partners for its projects. Given the ongoing political issues in Ukraine, the Company is also considering certain corporate transactions and other project opportunities.
Hawkley is in discussion with a number of parties regarding potential corporate and joint venture opportunities and will advise the market of any developments in due course. The Directors have noted an apparent increase in merger and acquisition activity in the oil and gas sector. Shareholders should be aware that there is no certainty of such discussions and negotiations leading to a transaction being concluded.
Sorochynska Production Licence
Location: Onshore Dnieper-Donets Basin, Ukraine
Area: 96.7km2
Hawkley's Interest: 100% & Operator
Directors
Glenn Featherby
Executive Chairman
Bill Foster
Non-Executive Director
Anthony Reilly
Non-Executive Director
Share Information
ASX Code: HOG Shares on Issue: 288.2M Options on Issue: 11.0M Share Price*: 0.4¢ Market Cap*: $1.2M
*As at 30th July, 2015
In November 2014, the Sorochynska 201 well in Ukraine experienced a sudden significant decrease in production. Investigations identified that the change in performance was due to water influx. Production ceased during December whilst investigations into possible remedies continued.
Additional compression equipment was installed and commissioned in March 2015 in an effort to resume production. Testing and commissioning of the additional equipment was carried out successfully, however the gas volume and pressure at the inlet was not sufficient for the compressor to continue operation.
The well is currently closed with monitoring indicating that the gas pressure is increasing due to gas inflow. The situation will continue to be monitored with the possibility of a further attempt to restart production in the near term if gas pressure increases sufficiently. There have also been further staff reductions and cost saving measures implemented in Kiev following the production halt at Well 201.
The Company will update investors further when new information becomes available.
Stoliarovska Production Licence
Location: Onshore Dnieper-Donets Basin, Ukraine
Area: 47km2
Hawkley's Interest: 100% & Operator
As previously advised, the licence area is covered by a relatively closed space grid of mixed vintage seismic. In 2013 Ukrgeofizika was contracted to reprocess and reinterpret the 2D seismic data set. Ukrgeofizika's reprocessing and interpretation report was received in December 2013 and has been reviewed by Hawkley's technical team. The timing and extent of further exploration is subject to an improvement in the Company's current financial position and the results of farm-out discussions.
Chernetska Exploration & Production Licence
Location: Onshore Dnieper-Donets Basin, Ukraine
Area: 51.7km2
Hawkley's Interest: 100% & Operator
The timing and extent of further exploration is subject to an improvement in the Company's current financial position and the results of farm-out discussions.
Petroleum Tenements
There have been no acquisitions, disposals or changes in beneficial interests in petroleum tenements during the Quarter.
For more information, please contact:
Glenn Featherby Executive Chairman Hawkley Oil & Gas Limited Ph: 08 9226 3211
www.hawkleyoilandgas.com
About Hawkley Oil & Gas Ltd
Hawkley Oil & Gas Ltd (ASX: HOG) is an exploration, development and production company with 100 per cent owned assets in Ukraine, a country with huge untapped gas potential. With a focus on emerging markets, its vision is to create a world-class independent oil and gas company with a portfolio of quality assets in some of the most prolific hydrocarbon basins in the world.
The Company's current assets include:
Sorochynska (100% HOG): Approximately 320km east of Kiev in the Poltava region of Ukraine, 3km to the west of Velyki Sorochynska village. Includes a gas plant owned and operated by Hawkley and a pipeline connected to well 201.
Stoliarovska (100% HOG): Located 25km east-southeast of Romny in the Sum'ska Oblast, 225km to the east of Kiev. Situated 40km east-southeast and 60km north of Hawkley's Chernetska and Sorochynska licences respectively.
Chernetska (100% HOG): Approximately 300km north east of Kiev in the Talalayvskiy district of the Chernigiv region of Ukraine, about 2km to the southeast of the village of Chernetska, in the northwestern part of the Dnieper-Donets Basin.