JKX Discovers Gas, Completes Hajdunanas-1 as Producer

JKX Oil & Gas plc has announced a gas discovery in the Hajdúnánás-1 exploration well in Hungary's Pannonian Basin.

The well was drilled to a total depth of 1,166 meters and encountered three productive gas bearing intervals, two in Miocene Pannonian sands and one in a Miocene volcaniclastic sequence. An 8m perforated interval in the upper zone of Miocene sand flowed at 3.8 MMcfd through a 10mm choke, with a flowing wellhead pressure of 1,264 psi; a 3m perforated interval in the lower zone of Miocene sand flowed 3.9 MMcfd through a 10mm choke, with a flowing wellhead pressure of 1,308 psi; and a 6m perforated interval in the uncemented lined 86m Miocene volcaniclastic section tested at 5.9 MMcfd through a 12mm choke, with a flowing wellhead pressure of 1,146 psi. The well has now been completed as a potential future producer.

The Hajdúnánás-1 discovery was made in the Hernád licenses which cover a total of 5,420 square kilometers in north eastern Hungary; JKX holds a 50% interest in the licenses. This is the first well drilled on the licenses since the 2007 acquisition of 350 sq km of 3D seismic data.

Further drilling is required to define the commercial significance of the Hajdúnánás-1 discovery. The next well is planned for the fourth quarter of 2008 and will initiate the appraisal of the three productive gas bearing intervals and also target a deeper Miocene formation which could not be reached by the Hajdúnánás-1 well. A number of additional exploration wells is also planned in 2009 on other targets identified in the basin.


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