JKX Drills Appraisal Well on Molchanovskoye Field

JKX Oil & Gas has commenced drilling of appraisal Well M202 as part of its 2003 work program at Poltava, onshore Ukraine. The well is scheduled to be completed in 35 days at a cost of $1.5million. The well will be drilled as a vertical well to a depth of 2,600m. The primary target is the gas bearing Tournasian sands, which form the principal reservoir in Molchanovskoye, with the Tournasian carbonates providing a secondary objective for the well.

The Molchanovskoye Field lies approximately 8km from the Ignatovskoye Field, which has been the primary focus of development activity at Poltava. Production commenced from Molchanovskoye Field in 1995 with the work-over of 3 existing wells. Production from these wells is transported by dedicated flowlines to the production facilities on the Igantovskoye Field and has declined over the seven-year period to approximately 250 boepd.

Well M202 will be drilled using the TR800 rig, under contract from Oil and Gas Exploration Cracow, which was used for the recently completed 2002 work program on the Igantovskoye Field.