JKX Completes & Tests Second Ukraine Well

JKX Oil & Gas has completed and tested Well M150, the second well of its 2004 drilling program at Poltava, Ukraine.

During testing, Well 150 flowed at a stabilized rate of 1,340 barrels of oil per day and 0.8 million cubic feet of gas through a 30/64" choke with a wellhead flowing pressure of 1,220 psi. The well has been tied back to the Company's production facility via an existing 6 km flowline. Well M150 is a horizontal development well located in a separate oil and gas bearing structure to the north of the main Molchanovskoye field. It is completed in a 275m section of oil bearing Tournasian sands.

The Skytop Brewster rig has now moved to the next location on the main Molchanovskoye field to drill Well M204. M204 will be a horizontal well and will target the gas condensate in the Tournasian sandstone and Tournasian carbonates. It will be drilled to a total depth of 3,100m and a vertical depth of 2,500m. Drilling is scheduled to be completed in 55 days.

Problems have been experienced maintaining production from M203 (the first well drilled in this year's program) due to water that is believed to be coming from thin sand above the main Tournasian sand reservoir; this sand has not previously been encountered in the main Molchanovskoye field. Work is ongoing to establish stable production and, if these efforts are not successful, it will be necessary to re-enter the well and isolate this sand.