JKX Oil & Gas plc has announced that it and Aurelian Oil and Gas Plc have signed a letter of intent with Gold Point Energy Corp in relation to the B Golitza and B1 Golitza licenses in Bulgaria, of which JKX and Aurelian respectively hold a 50% interest.
Under the terms of the letter, Gold Point will acquire a 20% working interest in the Golitza block on condition of paying 40% of the costs of a 250 sq. km 3D seismic survey plus 40% of the costs relating to two shallow test wells. Gold Point's obligation to pay 40% of the seismic and drilling costs will be capped at $5.0 million, following which it will pay 20% of costs. The current estimate of the costs for the 3D survey is $7.5 million with data acquisition scheduled to commence in September and completed by the end of the year.
In light of the rising costs of seismic work, today's announcement will reduce JKX's overall exposure to costs while positioning the Company well to benefit from any future upside from this asset. Following the earning of Gold Point's interest, participation in the block will be: JKX (40% and operator), Aurelian (40%) and Gold Point (20%).
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