JKX Finds Oil with Well M152 in Ukraine

JKX Oil & Gas has completed and tested Well M152 as part of its ongoing drilling program at Poltava, Ukraine. The well has been tied back to the Company's production facilities via an existing 6 km flowline.

During testing, Well M152 flowed at a stabilized rate of 2,950 barrels of oil per day and 2.4 million cubic feet of gas through a 40/64" choke, with a wellhead flowing pressure of 1,550 psi. Well M152 is a horizontal development well located in the northern part of the Molchanovskoye Field and was drilled following the success of M150, which was completed in August 2004. Well M152 penetrated a total of 351m of gas and oil bearing Tournasian sands and is producing from a 200m horizontal section in the oil leg. icraven@enscous.com The Skytop Brewster rig has now spudded Well M151, which is being drilled from an adjacent surface location, and is expected to encounter a very similar reservoir interval. icraven@enscous.com The testing of Well N70 in the Novo-Nikolaevskoye Field is nearly complete. To date, three separate intervals have been tested with only one interval producing hydrocarbons albeit at a sub-commercial rate; there remains one thin interval to be tested in August. N70 was drilled in a crestal location in the field, up dip of Well N9 which continues to produce approximately 500 bopd and 1MMscf. Studies to better define the distribution of hydrocarbons in the structure are underway. No reserves are yet attributed to the Novo-Nikolaevskoye Field. icraven@enscous.com In the Rudenkovskoye Field, the extended testing program on Well R12 is ongoing, and site preparation work has commenced for Well R101, the first new well in the field.