JKX.L Regulatory News (JKX)

12 Sep 2006 07:00

JKX Oil & Gas PLC12 September 2006 For Immediate Release JKX OIL & GAS plc ("JKX") ANNOUNCES UKRAINIAN EXPLORATION UPDATE JKX Oil & Gas plc ("JKX") announces that it has completed the drilling of itsfirst exploration well on the 95.7 sq km Zaplavskoye exploration licence,adjacent to its Poltava production licences. Well Z1 did not encounterhydrocarbons in the targeted Devonian sandstones and the well has been pluggedand abandoned. The Zaplavskoye prospect was identified as a four-way dip closed feature fromreprocessed 2D seismic shot during the 1980's. The prospect was targeted by thevertical Well Z1 at a predicted depth of 2,500m. During drilling, Well Z1 penetrated thicker than expected Tournasian carbonatesfrom 2,120m which extended to a depth of 2,950m where Devonian sandstones beganto be encountered at a much deeper level than anticipated. The Devoniansandstones extend to at least 3,174m, the depth at which drilling wasdiscontinued. Logs and a VSP survey were run prior to abandoning the well. Thelogs show the properties of the sandstones to be variable, but with someintervals having good porosities of up to 15%. The logs confirmed the sandstonesto be water bearing. Preliminary structural interpretation using the newly acquired well datasuggests that Well Z1 may have been drilled on the flank of the structure. Thefull set of 92 km of existing 2D seismic data is now being reprocessed andreinterpreted, prior to deciding on the next phase of exploration activity onthe licence. The Kremco rig has now moved to the Ignatovskoye Field where it will drill WellI125, which will target oil 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, Italy,Bulgaria, Turkey and the United States. ENDS For further information please contact: Sofia Rehman Cardew Group 020 7930 0777 This information is provided by RNS The company news service from the London Stock Exchange