JKX Looks Ahead

Ukraine focused JKX Oil & Gas is looking forward to more positive events after a challenging third quarter.

Gas production for the third quarter fell to 39.5 Mmcfd from 50.5 Mmcfd last year and total oil production dropped to 2,505 bopd from 5,233 bopd last year.

Fall back in third quarter production was anticipated due to the delayed arrival of the second drilling rig in Ukraine. Production is expected to recover at the end of the current quarter and continue to rise in the New Year.

Paul Davies, chief executive said, "The Company's efforts since the mid-year have been focused on the completion of the first of its major horizontal wells in the deep tight gas Rudenkovskoye field in Ukraine, and progress on the initial well workover, facility fabrication and construction programmes on the Koshekhablskoye project in southern Russia.

The Company has made progress on all its development and exploration assets in the period and anticipates announcing key well test results on both its deep Ukrainian and Russian fields in the coming weeks. The first of the horizontal wells to be drilled on the deep Rudenkovskoye tight gas field has successfully completed drilling and is being prepared for testing.

Earlier this month, JKX has announced that the Shkorpilovtci South West R-01 exploration well, on the B1 Golitza licence in east Bulgaria, had been plugged and abandoned. The well had been drilled to a total depth of 837m, with significant gas shows were encountered during drilling of the primary target, the Avren Formation, and the underlying secondary target, the Dvoynitca Formation sandstones. However, wireline log data demonstrated that in this location the primary reservoir was marginal to the main depositional system.

Interests in the well were JKX (Bulgaria) Limited 40% (Operator), Balkan Explorers (Bulgaria) Limited (a 100% subsidiary of Aurelian Oil and Gas PLC) 30% and Sorgenia E&P Bulgaria EOOD 30%.

Source: JKX Oil & Gas Plc