Karpinsky Oil and Gas Co. AS (KOGC) said it will sale two E&P licenses in Southern Russia.

The licenses lie in the hydrocarbon bearing Karpinsky Ridge Oil and Gas trend in the Rostov District and cover an area of 4,958 sq km (1,914 sq miles), the company said in a news release.

Early 2-D seismic indicates a number of strong drilling prospects within the license blocks, meaning there are opportunities for expanding the number of prospects in future, KOGC said.

KOGC, the majority shareholder in CJSC Rostneftegaz Geo (RNGG) which holds 100% of both licenses, is selling a minimum of 10% stake. The company plans to use the equity to finance its ongoing exploration and drilling program, including the completion of wells in both the Gashunsky and North Donskoy license block.