EuroGas entered into a confidentiality agreement with Total (TOT) in connection with the evaluation and possible acquisition by Total of certain rights held by EuroGas' wholly-owned West Ukrainian subsidiary in an onshore region in Western Ukraine. Total has also been evaluating the Bieszczady concession in Poland, in which EuroGas owns a 24% interest.
The properties under evaluation by Total are situated on a coal bed methane (CBM) concession near the Ukrainian/Polish border on which EuroGas was the first foreign oil company to drill a CBM well in Ukraine in 1998. This area within the Ukrainian part of the Lublin trough is offsetting recently acquired shale gas concessions by ExxonMobil, Chevron, Marathon Oil and Polish Oil & Gas (PGNiG) within the Polish part of the Lublin trough on the Polish side of the Polish/Ukrainian border.
"Over the past 13 years we have done a considerable amount of geological and technical research and have compiled an extensive database of old wells drilled in Western Ukraine," said Wolfgang Rauball, Chairman and CEO, EuroGas. "Our research indicates that the thickness of the shale gas formations under EuroGas' area in the Western Ukrainian portion of the Lublin trough is substantially thicker than those found in the successful shale gas fields in the United States."