The Olgovskoye-4 (O-4) and Olgovskoye-5 (O-5) wells were successfully stimulated resulting in maximum test rates of 4.0 million cubic feet per day (MMcf/d) from the O-4 well and 1.3 MMcf/d from the O-5 well.
The O-4 well has been tied-in for commercial production and is currently producing at 3.9 MMcf/d (1.17 MMcf/d net) of natural gas.
The Ukraine production is operated by KUB-Gas LLC (KUB-Gas), a partially-owned subsidiary in which Cub has a 30% ownership interest.
Gross production from KUB-Gas is now more than 30.5 MMcf/d of natural gas and 127 bbl/d of condensate resulting in net production to Cub’s 30% interest of 9.15 MMcf/d of natural gas and 38.1 bbl/d of condensate (1,563 boe/d).
The Olgovskoye/Makeevskoye gas processing facility is at maximum capacity and the production of the O-4 well has backed out approximately 2 MMcf/d. The facility is being expanded and, upon completion in the first quarter of 2014, the facility will be able to handle up to 68 MMcf/d of natural gas.
Mikhail Afendikov, chairman chief executive officer of Cub said, "The success of these fractures is very exciting for the Company. We have extended our record of frac success in Ukraine and have potentially proved up a significant new play, which could extend over much of our O and M license areas.
