JKX Finds More Gas with Ukraine Well R101

JKX Oil & Gas has continued testing Well R101 in the northern part of the Rudenkovskoye Field at Poltava, Ukraine with the perforation of the second of the gas bearing intervals within the Tournasian sandstones.

During the initial 6-day flow test of this second interval, the well produced at a stable rate of 2.2 million cubic feet of gas and 2 barrels of condensate per day, with a wellhead flowing pressure of 820 psi through a 27/64 inch choke. The 115m gas bearing interval is located at a depth between 4,095m and 4,210m and was perforated with tubing conveyed guns. The well has now been shut-in for a 12-day pressure build-up survey, following which it will be returned to production. Monitoring of well performance over the coming months will establish the efficacy of fracture stimulation.

Well R101 was spudded by the N75 rig in October 2005 and suspended at a depth of 4,570m in January 2006 after encountering significantly higher than expected pressures in the deepest formation. Following isolation of the highest pressure zone, testing of the first of two gas bearing intervals within the Tournasian sandstones (between 4,330m and 4,449m) was undertaken in June 2006 and, although the well flowed at an initial rate of 1 million cubic feet of gas per day, pressure data indicated the reservoir permeability of this lower interval to be low.

The positive initial results from this upper interval in the Tournasian sandstones defers testing of the remaining gas bearing intervals in the shallower Visean sandstones until the longer term production performance from the Tournasian sandstones is established.

The next Well R102 in the Rudenkovskoye Field is scheduled for the fourth quarter of the year and will be drilled in the southern part of the field of in the vicinity of Well R12. Well R12 was re-completed in 2004 and is productive from Devonian sands between 3,400m and 3,500m.