JKX to Begin Appraisal Program in East Texas
JKX Oil & Gas
|Friday, July 16, 2004
JKX Oil & Gas reports that drilling has commenced on a two well appraisal program in the Center Deep Federal Unit, in Shelby County, East Texas. JKX holds a 34.4% working interest in the 11,290 acre Unit. The operator is Rosetta Energy Partners LP, a private US company whose affiliate, Harvey E. Yates Company (HEYCO), operates a large number of leases in New Mexico and Texas and also has oil and gas interests in Europe.
The two wells will be drilled in a central location in the Unit on a high point of the structure. Both wells will be horizontal, each with a single lateral extending approximately 4000 ft at a vertical depth of 6200 ft, and will be drilled under-balanced. The geological target is the lower cretaceous James Lime formation, which produces gas from a number of wells adjacent to the Unit, notably in the Huxley field where wells with multiple horizontal laterals have been drilled.
The first well (CDU 5) was drilled on the Unit in 2001 and resulted in a commercial gas discovery. The new wells are expected to exhibit improved performance as a result of modifications to the well design.