Zhoda Investments holds via its wholly-owned subsidiary Shelton Canada Corp. a 50% interest in the Arkhangelskoye field. The company’s partner, Chornomornaftogaz (CNG), the leading state-owned Ukrainian oil and gas company specializing in offshore projects, is the license-holder. The license expires in 2038.
The field of 87 sq kilometers is located offshore, to the west of the Crimean Peninsula, in the shallow water shelf of the Black Sea.
The Arkhangelskoye field is a large seismically defined structure with multi-zone potential for natural gas.
The target for Zhoda Investments’ partnership with Chornomornaftogaz is the lower Paleocene limestone. It was located with 2D reflection seismic in 1965 and discovered by Chornomornaftogaz by drilling three exploratory wellbores.
The license is situated in shallow waters and could possibly be drilled with a jack-up rig at a cost relatively low for offshore drilling.
The existence of gas in the area is proven. Chornomornaftogaz already produces gas from Arkhangelskoye from a horizon that is above the horizon at which Zhoda Investments has its interests. A similar field a few kilometers from Arkhangelskoye is currently producing about 6,000 barrels of oil equivalent per day from the horizon in which Zhoda Investments has its share. Produced gas is transported to a sales point through the Chornomornaftogaz subsea pipeline, linking a number of offshore fields to the mainland. The pipeline has spare capacity.