KUB-Gas has received permission from the State Geological Service of Ukraine authorizing full industrial production from the Krutogorovskoye license for a 20-year term, according to a news release.

The new production license replaces the previously issued five-year special permit for exploration under which production was limited to no more than 10% of the in-place hydrocarbon volumes. With the conversion to a production license, production from Krutogorovskoye is no longer limited, the release said. The Krutogorovskoye license is operated by KUB-Gas, a partially-owned subsidiary in which Serinus Energy has a 70% effective ownership interest through its 70% shareholding in KUBGas Holdings Ltd.

The target reservoirs underlying the Krutogorovskoye license are of Musocvian and Bashkirian age with Bashkirian sandstones producing gas in both the K-1 and K-3 wells, the release said. The company is currently in process of acquiring permits to lay approximately 7 km (4 miles) of pipeline to tie-in the K-7 well for commercial production.