First Hungarian Gas Development On Stream

JKX Oil & Gas has announced the commencement of commercial gas production from the Hajdúnánás field in northeast Hungary. The field has come on-stream at an initial rate of 3.5 MMcfd from the Hajdúnánás -1 well, following its initial discovery in August 2008. The Hajdúnánás -2 well is scheduled to come on-stream within one month and, together, production is expected to increase to approximately 8.5 MMcfd.

The newly completed Hajdúnánás gas plant is connected via a 14.7 km, 8-inch diameter pipeline to a tie-in and fiscal metering point on the national gas network. A gas sales contract has been concluded with Fogaz Zrt, the Hungarian subsidiary of the German utility, RWE.

The Hajdúnánás Field is the first development on the Hernád licenses which cover a total of 5,420 sq km. JKX holds a 50% interest in the licenses. Exploration work is ongoing on the Hernád licenses with additional drilling results expected through the remainder of the year.



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