JKX.L Regulatory News (JKX)

11 May 2007 11:30

JKX Oil & Gas PLC11 May 2007 JKX OIL & GAS plc ("JKX") ANNOUNCES UKRAINIAN DRILLING UPDATE JKX Oil & Gas plc ("JKX") announces that it has completed and tested the deeperof two hydrocarbon bearing intervals in Well R102 as part of its ongoingdrilling programme at Poltava, Ukraine. Well R102 is the second new well to bedrilled by JKX on the Rudenkovskoye Field. During testing, Well R102 flowed at an average rate of 7.7 million cubic feet ofgas, 90 barrels of condensate and 230 barrels of water per day, with a wellheadflowing pressure of 1,210 psi through a 50 /64 inch choke. The well has beentied back to the Company's production facility via a new 4.5 km flowline. Well R102 is a vertical well in the southern area of Rudenkovskoye Field. Ittargeted the Devonian sandstone reservoir approximately 2.2 km from Well R12which was re-entered and sidetracked by JKX in 2005 and continues to produce gasfrom the Devonian sandstone. An extensive data acquisition programme was carriedout on Well R102 including 77m of cores and image logs. Using this data, thelower 45m interval from 3,630m to 3,675m depth was selected for open holetesting to maximise connectivity with the natural fractures identified from theimage logs. A second 138m interval from 3,212m to 3,350m depth has been identified as asuitable target for fracture stimulation. The timing for testing this intervalwill depend both on the performance of the current producing interval and theresults of the fracture stimulation programme on Well R101 which is scheduledfor next month. Since drilling Well R102, the Skytop N75 rig has drilled and completed WellM160, which targeted a potential northerly extension of the MolchanovskoyeField. Testing of Well M160 is scheduled for the coming week. The N75 rig hasnow moved to the Ignatovskoye Field where it has spudded Well I127 which willtarget the oil leg in the Visean Carbonate. JKX Oil & Gas plc is an exploration and production company listed on the LondonStock Exchange. The Company has license interests in Ukraine, Georgia, Russia,Italy, Bulgaria, Turkey and the United States. For further information please contact: Anthony CardewCardew Group, Tel: 020 7930 0777 This information is provided by RNS The company news service from the London Stock Exchange