Sunrise Begins Development of Ukraine Block
Sunrise Energy Resources, Inc. announced the beginning of development of the Rakitnyansk block in Eastern Ukraine.
Sunrise's wholly owned subsidiary, Esko Pivnich, holds an exploration license for the Rakitnyansk block. Well #1 of the Rakitnyansk block was drilled in 2002 to the depth of approximately 4560m (15,000 ft) by Poltavaneftegazgeologiya, which held the license for Rakitnyansk block prior to Esko Pivnich. Poltavaneftegazgeologiya currently acts as Sunrise Energy's PSA partner on the Rakitnyansk block.
The well has been shut-in since the completion of drilling due to the lack of funds required to prepare the well for production. For the last six months, the Company has conducted extensive workovers and flow tests that exhibited flow rates of approximately 4.0MMCF per day of natural gas, approximately 50 barrels of condensate per day on an 8mm choke.
The Company is currently in negotiations with the owner to lease the gas treatment facility, already on site, as well as the surrounding property. In addition to the existing treatment facility, the Company plans to build a gas/condensate separation unit and a four-mile gas pipeline to connect to the regional backbone gas network. The Company estimates a total investment of $1.0 million may be required to launch Well #1 into production. This includes the construction of the gas pipeline and the separation unit. Furthermore, the Company estimates that Well #1 can be launched within three months of the beginning of construction.
During the construction period, Well #1 will undergo continued testing that will enable the Company to estimate the reserves of the Rakitnyansk block and to determine the location of two new wells the Company plans to drill on Rakitnyansk block during 2007-2008.
Sunrise Energy Resources, Inc., through its wholly owned subsidiaries, Esko Pivnich and Pari, engages in the exploration and production of oil and gas in Ukraine.
- Sunrise Says Well #21 to Come Online Late August (Jul 26)
- Sunrise Hires Netherland, Sewell to Report on E. Ukraine Reserves (Jun 08)
- Sunrise Announces Expected Flow Rates from Karaikozovsk Well (May 07)