JKX.L Regulatory News (JKX)

19 Aug 2009 07:00

 19 August 2009

JKX OIL & GAS plc ("JKX")

ANNOUNCES

 FIRST HUNGARIAN GAS DEVELOPMENT ON-STREAM

JKX Oil & Gas plc ("JKX") is pleased to announce the commencement of commercial gas production from the Hajdúnánás field in north east Hungary. The field has come on-stream at an initial rate of 3.5 MMcfd from the Hajdúnánás -1 well, following its initial discovery in August 2008. The Hajdúnánás -2 well is scheduled to come on-stream within one month and, together, production is expected to increase to approximately 8.5 MMcfd.

The newly completed Hajdúnánás gas plant is connected via a 14.7 km, 8-inch diameter pipeline to a tie-in and fiscal metering point on the national gas network. A gas sales contract has been concluded with Fogaz Zrt, the Hungarian subsidiary of the German utility, RWE.

The Hajdúnánás Field is the first development on the Hernád licences which cover a total of 5,420 sq km. JKX holds a 50% interest in the licences. Exploration work is ongoing on the Hernád licences with additional drilling results expected through the remainder of the year.

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, Bulgaria, Slovakia and Georgia.

ENDS

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