Zhoda Investments holds via its wholly-owned subsidiary Shelton Canada Corp. a 50% interest in the three Biryucha fields. The company’s partner, Chornomornaftogaz (CNG), the leading state-owned Ukrainian oil and gas company specializing in offshore projects, is the license-holder.

The Biryucha fields are located approximately 50 kilometers off the Ukrainian coast in water depths of 20 meters. The concessions cover more than 150 sq kilometers.

The area is considered gas-prone with reservoir potential in the Maikop as well as the Upper and Lower Cretaceous.

In 2006, the partnership between Zhoda Investments and Chornomornaftogaz drilled a 1700-meter exploratory well in West Biryucha. The well provided the company with important data. The Lower Cretaceous strata had sandstone accumulations of up to 30 meters thick in two separate zones with 30% porosity.

Maikop strata had sandstone accumulations of up to 60 meters thick. The porosity was 26% with small amounts of dissolved gas found in the samples.