JKX Oil & Gas Completes First Well in Ukraine Drilling Progr

JKX Oil & Gas has completed the drilling of Well M203, the first well of its 2004 drilling program at Poltava, Ukraine. Well M203 is a horizontal development well located in the Molchanovskoye Field, and is completed in 250m of Tournasian sands. The well has been tied back to the Company's production facilities via a new 8 km flowline.

During initial testing, the well flowed at a rate of 3 million cubic feet of gas and 400 barrels of condensate per day through a 50/64 inch choke, with a wellhead flowing pressure of 800 psi. Testing of the well is continuing to determine its long-term productivity.

The Skytop Brewster Rig N75 has moved onto the second well of the program (Well M150) which was spudded on 11 July. Well M150 will be a horizontal well and will target the oil leg in the Tournasian sandstones in a separate structure in the north of the Molchanovskoye Field; it will be drilled to a total depth of 3,400m and a vertical depth of 2,700m. The well is scheduled to be completed in 50 days. Production from Well M150 will be transported approximately 6 km to the Company's production facilities by an existing flowline.