JKX Kicks Off 2004 Ukrainian Drilling Program

JKX Oil & Gas has spudded Well M203, the first well of its 2004 drilling program at Poltava, Ukraine.

Well M203 is a development well located in the Molchanovskoye Field. The primary target is the Tournasian sands which produce gas and condensate in appraisal Well M202 drilled in 2003. Well M203 will be drilled as a high angle well with a total depth of 3100m and a vertical depth of 2600m; it is expected to penetrate approximately 500m of sandstone reservoir of which 150m will be horizontal. The well is scheduled to be completed in 45 days. Production from Well M203 will be transported approximately 8km to the Company's production facilities at the adjacent Ignatovskoye Field by a dedicated flowline installed during the first quarter of 2004.

Well M203 is being drilled by a Skytop Brewster Rig N75 contracted from Oil and Gas Exploration Cracow for the 2004 drilling program at Poltava.