JKX.L Regulatory News (JKX)

16 Mar 2005 07:45

JKX Oil & Gas PLC16 March 2005 JKX OIL & GAS PLC ANNOUNCES FARM-IN TO EXPLORATION PERMITS, ONSHORE BULGARIA JKX Oil and gas plc ("JKX") is pleased to announce that it has farmed into twoonshore exploration permits, B Golitza and B1 Golitza, covering a total of4,800sqkm in eastern Bulgaria. The blocks contain two well defined prospects anda number of leads. JKX will earn a 25% interest in the permits by funding the 200km 2D seismicprogramme required to firm up drilling locations in both permits. JKX has theoption to earn a further 25% interest by electing to participate in the firstexploration well drilled on either permit, and funding the first US$1 million ofthe cost of the drilling programme; if the option is exercised, JKX will takeover as operator of both permits. It is anticipated that the seismic will be acquired in the second quarter of2005. Expenditure by JKX on both permits during 2005 is estimated at US$1.2million. A large prospect has been identified in the B Golitza permit with the potentialto contain several hundred Bcf of gas; the primary targets are Triassiccarbonates and sandstones at a depth of 4,000m. A smaller prospect has beenidentified in B1 Golitza, which could contain approximately 50 Bcf of gas in theshallow Tertiary formations at a depth of less than 2,000m. The permits are currently held 100% by Balkan Explorers Bulgaria Limited, awholly owned subsidiary of Falcon Oil and Gas Limited, who will retain thebalance of the interest in these permits. 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, 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