The acquisition includes 20 year production license.

The production license Stoliarovska is spread on an area of 47km² and is situated on the southern flank of the South Afanasivska structure, down dip of the South Afanasivska oil and gas field.

It is estimated that the license holds 193 billion cubic feet (BCF) of gas equivalent, of which the Ukrainian State carries prospective resources of 89.7Bcf gas and 10.4 million barrels of oil for the fault closures alone.

An additional stratigraphic trap has been identified in a Serpukhovian channel body, which is expected to contain a prospective resource of up to 42 Bcf gas.

Hawkley Oil & Gas CEO Richard Reavley said the license adds to its portfolio and supports the company’s criteria of operation in its licenses with 100% title.

"This licence has significant exploration potential and its proximity to producing oil and gas fields gives us confidence in the presence of reservoir and charge," Reavley added.

"The horizons we will be targeting are significantly shallower than previous wells we have drilled and we therefore expect to deliver cheaper wells in less time."

The oil and gas production has been witnessed from several levels in the Visean and Serpukhovian carboniferous and up dip from the Anastasivska gas field. Both fields have been in production for more than 25 years.

The license area is covered by 2003 vintage grid of 2D seismic data and the charge and presence of reservoir is considered to be low risk.

Hawkley is planning to acquire additional seismic data to further reduce any structural risk and identify optimal well locations.

Three possible plays have been identified in Carboniferous sands within the licence area namely, Stratigraphic channel play (Serpukhovian age), Fault closures on downthrown side of normal faults, and Fault closure – below reverse faults.