JKX.L Regulatory News (JKX)

29 Jun 2006 11:31

JKX Oil & Gas PLC29 June 2006 JKX OIL & GAS PLC ANNOUNCES UKRAINIAN WELL TESTING UPDATE JKX Oil & Gas plc ("JKX") announces that it has commenced testing Well R101 inthe north of the Rudenkovskoye Field at Poltava, Ukraine. 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 lower section. It was decided to isolate the lower section andtest the upper Visean and Tournasian formations only. The N75 rig returned tothe well in May of this year to install a high strength casing string andprepare the well for testing. The underlying high pressure Devonian formationsare planned to be investigated with a new deeper well to be drilled by a largerrig. Two gas bearing intervals were identified from mud logs within the Tournasiansandstones. A gas bearing interval of 119m located between 4,330m and 4,449m hasnow been perforated using tubing conveyed guns. The well flowed at an initialrate of 1 million cubic feet of gas per day with a wellhead flowing pressure of1,400 psi. This declined to a rate of 0.3 million cubic feet of gas per day witha wellhead flowing pressure of 300 psi over the 4-day test period. Pressure dataindicate that the reservoir permeability of this interval is low. The second115m gas bearing interval between 4,095m and 4,210m is scheduled for testing inlate August/September when the N75 rig completes the drilling of developmentWells M155 and M153 in the northern part of the Molchanovskoye Field. A number of further gas bearing intervals totalling up to 59m has beenidentified from mud logs in the Visean sandstones at depths between 3,443m and4,082m. Scheduling of the investigation of these shallower intervals isdependent on results of the Tournasian sandstone test programme. Fracturestimulation is also being considered as a supplement to the planned testprogrammes. Well R12 in the south of the Rudenkovskoye Field continues to be productive fromDevonian 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