JKX Granted Production License Extension in Ukraine

Energy firm JKX Oil & Gas revealed Monday that the Ukrainian authorities have granted the company an extension to its Elizavetovskoye production license, which will include the West Mashivske Prospect.

The extension, which measures 13 square miles, increases the total area of the Elizavetovskoye license to 40 square miles. The primary target in the West Mashivske Prospect is the Permian A8 sandstone reservoir, according to JKX. This reservoir is said to be at a similar depth to the productive Permian A2 carbonate reservoir in the Elizavetovskoye field.

JKX Chief Executive Dr Paul Davies commented in a company statement:

"This further award is a recognition of our ability to develop the potential of our Ukrainian licenses. However, we have been forced to suspend drilling operations in Ukraine because of the current punitive levels of production tax and restrictive currency controls. Drilling on the West Mashivske prospect will also be deferred until investment conditions improve."

The West Mashivske Prospect is located southwest of the Ukrainian city of Poltava. JKX’s Elizavetovskoye license is valid until July 31, 2034.