Hawkley Oil & Gas has made its debut on the Australian Securities Exchange (ASX) after a reverse takeover of the former biotechnology company Incitive and a successful $5.5 million capital raising.
Hawkley Oil & Gas has made its debut on the Australian Securities Exchange (ASX) after a reverse takeover of the former biotechnology company Incitive and a successful $5.5 million capital raising.
Hawkley shares fetched 19 cents at 1254 AEST, down half a cent from its opening price of 19.5 cents.
The company recently raised $5.5 million from the issue of 27.5 million shares at a price of 20 cents each.
In a statement Hawkley Oil & Gas said the company has a strong portfolio of growth assets in central and Eastern Europe.
Hawkley's CEO, Richard Reavley, said he was pleased to see the company re-list on the ASX following a lengthy suspension required to complete the reverse takeover of Incitive and capital raising.
"I would like to thank our shareholders and investors for their patience and support, with this transaction being completed during a period of considerable volatility and uncertainty in global markets," Mr Reavley said.
"Hawkley has an extremely bright future ahead of it with two quality near-term gas-condensate production assets in Ukraine and an exciting growth portfolio, including the opportunity to secure additional conventional and unconventional petroleum assets in central Europe" he added.
Full company statement below:
Hawkley Oil & Gas (ASX: HOG) is pleased to advise that its shares commenced trading on the Australian Securities Exchange (ASX) today, bringing to the Australian market a new independent oil and gas company with a strong portfolio of growth assets in central and Eastern Europe.
The Company made its debut on the ASX following completion of a reverse takeover of the former biotechnology company Incitive Limited (ASX: ICV) and a successful $5.5 million capital raising.
Hawkley joins the ranks of ASX listed oil and gas companies with development activities already well advanced at its two key gas-condensate licences in Ukraine's Dnieper-Donets gas basin, where it is aiming to bring its first gas-condensate production well on stream this year.
These production assets will provide a strong platform for Hawkley's next growth steps in central and Eastern Europe, where it is also currently evaluating a number of corporate deals, further licence applications and investigating the potential for unconventional gas plays in Ukraine.
The Sorochynska Licence is expected to become Hawkley's first production asset in Ukraine, with drilling of the Sorochynska Well #201 currently underway targeting a Proved and Probable gas resource of 13.2 billion cubic feet (BCF).
This well, which is currently at a depth of 3,447 metres, is expected to reach its final target depth of 4,250 metres in July.
The Company is currently finalising access to the international pipeline and a gas plant located approximately 8km from the well site, to enable Well #201 to be tied in and commence production of gas and condensate.
The well is targeting the reserves and resources contained in the B18b horizon and is located within 300m of well #110 which produced in the late 80s. The company expects that completion of a successful well would provide flow rates similar to those seen in #110 in the region of 4.0mmcfgpd and 150stbcpd.
The Company's second near-term production asset is the Chernetska Licence, where it has lodged an application for the use of land to drill Well #1. This well is planned to test the B-20 oil accumulation encountered in Well #321 and to test the B21/22 and B24/24 gas bearing horizons.
The B-20 reservoir has a target estimated to contain 1.7MMSTB of recoverable oil (mid estimate) and up to 4.8MMSTB of recoverable oil.
The planning of the construction of Well #1 is well advanced and will begin as soon as possible after Well #201 in the Sorochynska Licence is brought on-line.
The funds from the Company's recent capital raising will be used to complete the drilling of Well #201, with the resultant cash flow from this well to be used to complete preparations for the well at Chernetska and pursue other growth opportunities.
Hawkley's CEO, Richard Reavley, said he was pleased to see the Company re-list on the Australian Securities Exchange following a lengthy suspension required to complete the reverse takeover of Incitive and capital raising.
"I would like to thank our shareholders and investors for their patience and support, with this transaction being completed during a period of considerable volatility and uncertainty in global markets," Mr Reavley said.
"Hawkley has an extremely bright future ahead of it with two quality near-term gas-condensate production assets in Ukraine and an exciting growth portfolio, including the opportunity to secure additional conventional and unconventional petroleum assets in central Europe" he added.
