JKX Oil & Gas plc has entered into an agreement to acquire an interest in three exploration licences in the Carpathian Fold Belt in Slovakia. The licences were awarded in August 2006 and cover a total area of 2,278 sq km.
JKX, through a wholly owned subsidiary, will acquire a 25% interest in the Svidnik, Medzilaborce and Snina licences which are currently held and operated by three wholly owned local subsidiary companies of Aurelian Oil & Gas PLC. JKX has agreed to fund the first 1.6 million of a 238 km, 2D seismic programme to be shot in 2008, and a sum of approx 300,000, being 25% of historical costs expended by Aurelian up to 1 January 2008. JKX will fund the acquisition from existing cash resources.
Completion of the transaction is conditional on obtaining approval from the Slovakian Ministry of Environment.
The Carpathian Fold Belt has been an active area for oil and gas exploration and production for many years. Advances in seismic imaging technology have resulted in recent discoveries in analogous structural settings in Poland. JKX believes that similar exploration efforts in Slovakia, where there are numerous oil seeps and gas shows, could prove up an economic petroleum system in an area with potential for dip-closed thrust traps of significant size.
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