JKX.L Regulatory News (JKX)

4 Oct 2006 11:43

JKX Oil & Gas PLC04 October 2006 FOR IMMEDIATE RELEASE JKX OIL & GAS PLC ANNOUNCES UKRAINIAN WELL TESTING UPDATE JKX Oil & Gas plc ("JKX") announces that it has continued testing Well R101 inthe northern part of the Rudenkovskoye Field at Poltava, Ukraine with theperforation of the second of the gas bearing intervals within the Tournasiansandstones. During the initial 6-day flow test of this second interval, the well produced ata stable rate of 2.2 million cubic feet of gas and 2 barrels of condensate perday, with a wellhead flowing pressure of 820 psi through a 27/64 inch choke. The115m gas bearing interval is located at a depth between 4,095m and 4,210m andwas perforated with tubing conveyed guns. The well has now been shut-in for a12-day pressure build-up survey, following which it will be returned toproduction. Monitoring of well performance over the coming months will establishthe efficacy of fracture stimulation. Well R101 was spudded by the N75 rig in October 2005 and suspended at a depth of4,570m in January 2006 after encountering significantly higher than expectedpressures in the deepest formation. Following isolation of the highest pressurezone, testing of the first of two gas bearing intervals within the Tournasiansandstones (between 4,330m and 4,449m) was undertaken in June 2006 and, althoughthe well flowed at an initial rate of 1 million cubic feet of gas per day,pressure data indicated the reservoir permeability of this lower interval to below. The positive initial results from this upper interval in the Tournasiansandstones defers testing of the remaining gas bearing intervals in theshallower Visean sandstones until the longer term production performance fromthe Tournasian sandstones is established. The next Well R102 in the Rudenkovskoye Field is scheduled for the fourthquarter of the year and will be drilled in the southern part of the field of inthe vicinity of Well R12. Well R12 was re-completed in 2004 and is productivefrom Devonian sands between 3,400m and 3,500m. 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 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