JKX Confirms Hungarian Gas Discovery with Successful Appraisal Well

JKX has announced a successful appraisal well, Hajdunanas-2, in Hungary's Pannonian Basin. The well confirms the commerciality of the gas discovery made by the Hajdunanas-1 exploration well in August 2008.

The Hajdunanas-2 well was drilled vertically to a total depth of 1,467m and encountered several gas bearing intervals within the Miocene Pannonian interval between 990m and 1080m. The productive Miocene volcanoclastic sequence encountered in Hajdunanas-1 below the Pannonian interval was found to be tight at this location and, consequently, a deeper Miocene target was not pursued.

Two production tests were completed in the Pannonian sands. An upper zone with a 25m perforated interval flowed at 7.4 MMcfd through a 14mm choke, with flowing wellhead pressure of 1,250 psi. The lower zone tested a 5m interval and flowed at 8.5 MMcfd through a 16mm choke, with a flowing wellhead pressure of 1,308 psi.

Planning for a fast track development of the Hajdunanas discovery is underway with first commercial gas production expected by mid 2009. Preliminary estimates indicate a gas in place of approximately 12 BCF in the Pannonian sands. Further drilling is required to define the commercial significance of the underlying Hajdunanas Miocene volcanoclastic interval and the deeper Miocene formation.

The Hajdunanas-2 appraisal was drilled in the Hernad licenses which cover a total of 5,420 sq km in north eastern Hungary; JKX holds a 50% interest in the licenses. Exploration well results are expected in 2009 from the drilling of other prospects on both the Hernad licenses.