24 Apr 2012 07:00
6 Cavendish Square, London W1G 0PD, England, UK
Tel: +44 (0)20 7323 4464 Fax: +44 (0)20 7323 5258
Web site: http://www.jkx.co.uk
24 APRIL 2012
JKX OIL & GAS plc ("JKX")
ANNOUNCES
Elizavetovskoye Field Start-up
JKX Oil & Gas plc is pleased to announce that test production from well M-53 has commenced in its Elizavetovskoye licence in Poltava, Ukraine.
During a multi-choke test, well M-53 flowed at an average rate of 3.8 MMcfd of gas and 1.1 bpd of condensate and water through a 30/64 inch choke with a flowing wellhead pressure of 788 psi. The well has been tied back through a test separator to the adjacent Mashivske field processing facility from where it is being exported into the Ukrainian gas pipeline network.
Well M-53 is owned by the state company Ukrgasvydobuvannya ("UGD") and is being operated under a Joint Producing Agreement ("JPA") between JKX's wholly owned Ukrainian subsidiary, Poltava Petroleum Company ("PPC"), UGD and its agent LLC KhAS. Under the JPA, PPC receives one third of production from the well as the Elizavetovskoye licence holder and this is being added to PPC's daily gas sales volumes.
The agreement is valid for three years and, if justified by test production from well M-53, it envisages the recompletion of two further existing wells owned by UGD in the Elizavetovskoye licence and the installation of a stand-alone gas treatment plant. Thereafter, PPC can develop the field as it chooses and all production from any wells drilled by PPC will be wholly owned by PPC.
Dr Paul Davies, JKX's Chief Executive, commented:
"We are very pleased to have finally started production in the Elizavetovskoye field. The existing agreement enables PPC to obtain production history economically before making any significant investment in the field."
JKX Oil & Gas plc is an exploration and production company listed on the London Stock Exchange. The Company has licence interests in Ukraine, Russia, Hungary, Slovakia and Bulgaria.
ENDS
For further information please contact:
Nadja Vetter/Alexandra Stoneham | Cardew Group | 020 7930 0777 |