JKX.L Regulatory News (JKX)

27 Jan 2006 07:00

JKX Oil & Gas PLC27 January 2006 FOR IMMEDIATE RELEASE 27 JANUARY 2006 JKX OIL & GAS plc ANNOUNCES ACQUISITION OF NEW EXPLORATION LICENSE, ONSHORE UKRAINE JKX Oil & Gas plc ("JKX") announces that it has been awarded the ChervonoyarskeEast exploration license, onshore Ukraine, by the State Committee of Ecology andMineral Resources of Ukraine. The license covers an area of 5.5 sq km and islocated approximately 75 km from the Company's existing production facilities.The license is valid for a period of five years for exploration and testproduction, following which the Company has the priority right to apply for atwenty-year production license. The Chervonoyarske East license was acquired following an open auction held onthe 26 December 2005 by the Ministry of Environmental Protection of Ukraine. Theauction was the first of its kind in Ukraine. The Chervonoyarske East license is in the Kharkiv Region and is located on thenorthern margin of the Dnieper Donets basin, adjacent to the ChervonoyarskeField which produces gas condensate from the late Carboniferous sands. The datapackage purchased with the license includes 110 km of 2-D seismic data and dataon the six wells drilled on the license to date; two of the wells producedhydrocarbons under test. The Company intends initially to reprocess the existingseismic data and shoot additional 2-D seismic to complete the data set. Thiswill form the basis of the forward work programme. JKX Oil & Gas plc is an oil and gas exploration and production company listed onthe London Stock Exchange. The company has license interests in Ukraine,Georgia, Italy, Bulgaria, Turkey, Russia and the United States. ENDS For further information please contact: Anthony Cardew/Sofia Rehman Cardew Group 020 7930 0777 This information is provided by RNS The company news service from the London Stock Exchange