The State geological service of Ukraine has issued a special permit for the West Olhivske oil block (Kharkiv region) to KUB-Gas LLC (Luhansk), the majority shareholder in the company, Serinus Energy Inc. (Kulczyk Oil Ventures Inc., Canada, with key assets in Ukraine), said on the website of the Warsaw Stock Exchange (WSE).

The term of this new special permit is for 20 years with the right to a 20 year extension, during which KUB-Gas will be allowed to conduct both exploration and production activities.

The block covers an area of 449 square kilometers (which means that the area of the company's blocks in Ukraine has doubled).

It surrounds (but does not include) the existing Druzheliubovske gas/condensate field which is owned and operated by Ukrgazvydobuvannia, a subsidiary Naftogaz Ukrainy.

There are work ongoing commitments of approximately $9.6 million, the company said.