3P International Adds Ukraine Company To Portfolio

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$17.0MM
Description

Bought company with 4 gas licenses in western Ukraine, gaining 3.4 MMBO proved.

3P International Energy Corp., Toronto, (Toronto Venture: DOH) has completed the acquisition of Uzhgorod, Ukraine-based JSC Tysagaz for US$17 million.

The assets include four gas licenses in the Transcarpathian region of western Ukraine.

The Rusko-Komarivske license includes two producing wells, and gas treatment facilities that are connected into regional gas pipelines. Three exploration licenses with 300 square kilometers having been drilled and include gas discoveries from the Soviet exploration period. The area has been well studied and documented, with shallow reservoirs (under 1,500 meters). Based on Tysagaz's approved and permitted development plan, up to five shallow wells are permitted to be drilled/recompleted in 2012.

Total proved reserves for the Rusko-Komarivske license of April 30 were 3.4 million barrels of oil, proved and probable reserves were 11.89 million barrels and proved, probable and possible reserves were 22.88 million barrels.

Ron MacMicken, 3P International president and chief executive, says “This asset provides the foundation for us to build on our stated business plan of exploiting proved undeveloped assets in shallow basins in the Ukraine and Eastern Europe. Tysagaz has a unique mix of proved producing reserves and proved undeveloped reserves that present low risk work over activities (perforation cleanouts on the two producing wells) and shallow drilling that we believe could significantly enhance current production of 350,000 cubic feet per day to 5 million cubic feet per day in 2012.”

3P International chairman Greg Cameron says, “We are confident that the Tysagaz properties have significant low risk development potential. Phase One of a detailed development program is underway with the reprocessing of old seismic and a petrophysical analysis that will determine the ultimate location for the first development wells on the Rusko-Komarivske field. We expect our first well to spud early 2012 and drilling will continue on both the Rusko-Komarivske and Stanivske Fields through-out the year.”