JKX Farms Into Exploration Licenses in Western Turkey
JKX Oil & Gas has farmed into onshore exploration licenses AR/AME/3998 and AR/AME/3999 in the Thrace region in the west of Turkey. These two licenses covers a total of 897 sq km. JKX will earn a 25% interest in the licenses by paying 50% of the costs of study work and new seismic up to a maximum of US$415,000.
The licenses contain two strong leads, but additional seismic is required to confirm the presence of a drillable prospect. The seismic is planned for 2006 and a first well could be drilled in 2007. The target formations are tertiary sands which produce gas from a number of fields in Thrace. The closest producing field is 25km to the east.
The permits are currently held 100% by Aladdin Middle East ("AME"). Tethys Oil Turkey AB ("Tethys") is acquiring a 25% interest on the same terms as JKX. Following the farm-in, the license interests will be: AME 50% (operator); JKX 25%; and Tethys 25%.
This agreement represents the second farm-in to licenses covered by the Memorandum of Understanding between JKX and AME as announced in May 2005.