JKX Oil & Gas has entered into an agreement with Hungarian Horizon Energy ("HHE"), a subsidiary of the private US independent Aspect Holdings LLC, to farm-in to a 15.6 sq km area of the Veszto exploration license which covers 219 sq km in the east Hungarian Pannonian Basin. HHE is the operator of both JKX's Hernad and Nyirseg licenses in Hungary.
Under the terms of the agreement, JKX will acquire a 25% interest in the part license by contributing its share of the costs of the first well in addition to contributing to back costs. JKX anticipates expending up to US $3.25 million in the next quarter on the drilling of both the current exploration well and one further contingent well, and an apportionment of exploration costs to date.
A 3D seismic survey covering the entire license has been completed and interpreted with two prospects identified. The target horizons are amplitude supported Miocene clastic and volcanoclastic intervals within four-way dip closed structures. The results of the first well are expected this quarter.
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