The company will buy all of the issued and outstanding shares of Tysagaz for cash consideration of $17m, subject to working capital adjustment.

Tysagaz is the title holder to four gas licenses – the Rusko-Komarivske, Stanivske, Korolivske gas fields, and the Uzhogorod exploration block – in the TransCarpathian region of western Ukraine.

3P CEO Ron MacMicken said that acquiring a proven reserve base with upside potential and selling that gas at an anticipated price in excess of $8 per mcf with strong netbacks will immediately provide returns to 3P and position the company to become a significant player in Ukraine.

Tysagaz is an operating company, with all the permits, technical and human resources for oil and gas exploration, production and marketing.