Ukraine: Iskander and Hutton Energy JV in Donets Basin

Hutton Energy Plc has announced a joint venture with Iskander Energy Corp. on its exploration license in the Donets Basin, Ukraine.

The new JV (49% Hutton/51% Iskander) will test the tight sands in the Donets Basin. The region was targeted due to its relatively deep coals containing significant tight sand potential, independently estimated by Resolve Geophysical as 1,045 BCF.

Well permits have been acquired and two wells are planned for 2012, with the first to be spudded in August.

Hutton Managing Director David Messina commented: “We are looking forward to working with Iskander completing these first two test wells. The recent announcement that Shell has been awarded the area adjacent to our license confirms our initial analysis that the area shows high potential for commercial gas production.”