JKX Oil & Gas has farmed into two exploration Licenses, Hernad I and Hernad II, covering a total of 5,420 sq km in the north Hungarian Pannonian Basin. The Licenses are valid through 2013 subject to a continuing work program.
JKX has farmed in for a 50% participating interest in the Licenses which are currently held 100% by the operator, Hungarian Horizon Energy ("HHE"), a subsidiary of Aspect Holdings LLC (formerly Aspect Energy), a private US independent. HHE is a leading explorer in the Pannonian Basin and committed to developing energy resources in Hungary.
JKX anticipates spending approximately US$7 million through the end of 2008 on an apportionment of exploration costs to date and drilling of the first exploration well.
The southern part of the Licenses includes a typical Pannonian Basin stratigraphy with the potential for both structural and stratigraphic traps within Miocene age reservoirs. A 3D seismic acquisition of 350 sq km has recently been completed within these Licenses. The large 3D seismic volume, in combination with the derived amplitude versus offset (AVO) data, has the potential to reduce the exploration risk significantly for this type of play.
In addition, several other play types in the northern part of the Licenses have been identified from 2D seismic data and offset well information, and remain to be fully evaluated.
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