JKX Sells Oklahoma Assets

JKX Oil & Gas has sold its Oklahoma oil and gas interests to its local partner and operator, Avalon Exploration Inc, for a consideration of $8.84 million. In accordance with the terms of the sale and purchase agreement, the initial payment of $4.42million has been received, with the balance due on December 12, 2004. The second payment of $4.42 million is interest bearing and secured by a mortgage over the WEHLU (West Edmond Hunton Lime Unit) property.

JKX farmed-in to the Oklahoma properties in January 2001 and has successfully developed oil and gas production from the Penney and WEHLU areas. For the six months ended June 30, 2003, the properties accounted for average production net to JKX of 232 boepd, with an operating loss of $150,000 for the period. The consideration approximates to the carrying value of the assets at the time of sale.

Dr. Paul Davies, JKX CEO, said: "Realization of value for the Oklahoma properties provides additional funds for acceleration of development of our producing assets in Ukraine".