JKX Upgrades Elizavetovskoye Reserves

JKX Oil & Gas announced Monday that it has seen an upgrade to the remaining reserves for its Elizavetovskoye field near Poltava, Ukraine. The reserves have been revised upwards to 22 billion cubic feet of gas (3.7 million barrels of oil equivalent) with a further 22 million barrels of net prospective resources in the license.

JKX said the revisions have followed long-term testing of the legacy East Machesvska 53 (M-53) well under a joint production agreement (JPA) between JKX and the well owner and former operator of the field. The reserves revision is based on mapping and material balance data from the M-53 well and other wells on the field.

JKX acquired the Elizavetovskoye license in November 2004 and finalized the JPA for the three legacy wells on the license in late 2011. In April 2012, JKX restored the M-53 well to production and now receives 33 percent of the production from it. It currently flows at 2.7 million cubic feet of gas per day on a restricted choke.

The firm is now proceeding with a five-well development of the license, with the spudding of the first new well scheduled for middle of this year. First gas is anticipated in 4Q 2013.

JKX Chief Executive Dr Paul Davies commented in a statement:

"We are very pleased that the data collected from our joint activity with the Ukrainian state production company has demonstrated both the materiality of the 2P reserves and the significant prospective resources on our Elizavetovskoye licence."