Kulczyk Oil Ventures Inc., an exploration company owned by Polish billionaire Jan Kulczyk, said that Ukrainian authorities allowed it to change the status of its Olgovskoye license from exploratory to producing.
“The conversion of the license means that the company is no longer obliged to limit output to 10 percent of its reserves,” Kulczyk Oil said today in a regulatory statement.
The Olgovskoye permit, the most productive from five the company has to explore for oil and gas in Ukraine, is valid for 20 years and has output of 12 million cubic feet of gas per day, according to the statement.
The company in November said its unit completed the first hydraulic fracturing at the Olgovskoye-6 well.
Shale gas development, where rock formations are horizontally drilled and broken apart using water, chemicals and sand under high pressure in a process known as hydraulic fracturing, has driven a surge in U.S. gas output and damped prices.