JKX Oil & Gas Acquires New Onshore Exploration License in Ukraine
JKX Oil & Gas has been awarded the Chervonoyarske East exploration license, onshore Ukraine, by the State Committee of Ecology and Mineral Resources of Ukraine. The license covers an area of 5.5 sq km and is located approximately 75 km from the Company's existing production facilities. The license is valid for a period of five years for exploration and test production, following which the Company has the priority right to apply for a twenty-year production license.
The Chervonoyarske East license was acquired following an open auction held on the 26 December 2005 by the Ministry of Environmental Protection of Ukraine. The auction was the first of its kind in Ukraine.
The Chervonoyarske East license is in the Kharkiv Region and is located on the northern margin of the Dnieper Donets basin, adjacent to the Chervonoyarske Field which produces gas condensate from the late Carboniferous sands. The data package purchased with the license includes 110 km of 2-D seismic data and data on the six wells drilled on the license to date; two of the wells produced hydrocarbons under test. The Company intends initially to reprocess the existing seismic data and shoot additional 2-D seismic to complete the data set. This will form the basis of the forward work programme.
JKX Oil & Gas plc is an oil and gas exploration and production company listed on
the London Stock Exchange. The company has license interests in Ukraine,
Georgia, Italy, Bulgaria, Turkey, Russia and the United States.