Gas and oil E&E firm KOV encountered natural gas deposits in K-7 well of its Krutogorovskoye license in Ukraine and expects to launch production in Q3, which should increase KOV's daily output by 57,000 m3, KOV said in a market filing.

The company recorded some 5 MMcf/d initial flows from the well, the filing read.

Launching the production should increase KOV output by 57,000 m3 a day, KOV press office told PAP Polish news agency.

KOV expects to launch production, after it extends a pipeline to the well, KOV said. Until that time, the well will be shut down to observe pressures.