JKX Completes 3rd Well in Ukrainian Drilling Program

JKX Oil & Gas has completed and tested Well M204, the third well of its 2004 drilling program at Poltava, Ukraine. The well has been tied back to the Company's production facilities via an 8 km flowline installed as part of the 2004 work program.

During testing, Well M204 flowed at an initial rate of 1 million cubic feet of gas and 350 barrels of condensate per day through a 40/64 inch choke, with a wellhead flowing pressure of 685 psi. Well M204 is a development well located in the Molchanovskoye Field, and is completed in a 15m interval of Tournasian sands.

The Skytop Brewster rig has moved back onto the adjacent Well M203 and commenced re-entry operations. The well is being sidetracked to isolate a thin sand above the main Tournasian sand reservoir, which is believed to be the source of water ingress. It is anticipated the well will be placed back on production within 30 days. The rig will then move to the Rudenkovskoye Field with sidetracking operations on Well R12 scheduled to commence on January 15, 2005.