Shelton Canada has signed a joint investment activity agreement with Chornomornaftogaz, a 100% Ukrainian state owned enterprise, to acquire, jointly develop and operate the Arkchangelske Field located on the west side of the Crimean Peninsula in the shallow water shelf of the Black Sea.
According to the company, it acquired a 50% working interest in the entire concession. The agreement is now going through the registration process with the regulatory authorities of the Ukrainian government.
The 87sqkm concession holds a large seismically defined structure with multi-zone potential for natural gas. The field is currently on production with cumulative production of 17 billion cubic feet of natural gas from a single platform.
The company said that produced gas is transported to a sales point through the Chornomornaftogaz subsea pipeline linking a number of offshore fields to the mainland. This pipeline has capacity for additional daily volumes.
Chornomornaftogaz and Shelton have planned a work program pursuant to the joint investment activity agreement. The work program planned for 2009 consists of the acquisition of 300km of new two dimensional seismic as well as development of an optimum production model.
Seismic acquisition contractor bids are now being acquired and the program is scheduled to take place during the second and third quarters of 2009. The Arkchangelske license has been renewed in early 2008 and is now valid until 2038.
