Kiev – On August 29, 2011, JV Kashtan Petroleum Ltd. (hereinafter "Kashtan"), informed Ukrnafta PJSC (UX: UNAF, hereinafter “Ukrnafta” or “the Company”) that the State Geology and Subsoil Service of Ukraine renewed Kashtan's license to Leliakivske field, confirming that the issues, which led to a temporary shut-in of the field in October 2010, were properly addressed.
Ukrnafta holds a 55% equity interest in Kashtan. Zhoda 2011 Corporation, a subsidiary of Shelton Petroleum (NGM: SHEL B), owns the remaining 45%.
Starting August 30, technical steps are being taken to restart operations at the field. Before production was temporarily suspended in October 2010, Leliakivske field produced 113.2 tonnes of oil and condensate, and 26.75 thousand cubic metres of gas per day.
Commenting on the news, Peter Vanhecke, Chairman of the Management Board of Ukrnafta, noted: "Regulatory problems, which arose in the past, are being addressed expediently. We welcome the constructive cooperation of the State Geology and Subsoil Service and other relevant state entities. This announcement is furthermore important as Ukrnafta views joint ventures as a supportive instrument to achieve production growth and obtain modern technology."