JKX Oil & Gas plc announces that it has concluded a farm-in agreement with Sorgenia E&P SpA. (“Sorgenia”) in relation to the B Golitza and B1 Golitza licences in Bulgaria, in which JKX and Aurelian Oil and Gas Plc ("Aurelian") each currently hold a 50% interest.
Under the terms of the farm-in agreement, Sorgenia will acquire a 30% working interest in the Golitza licences by contributing US$2.4 million towards the 250 sq km 3D seismic survey acquired between October 2008 and January 2009, in addition to its equity interest. Following the earning of Sorgenia’s interest and subject to the approval of the Bulgarian authorities, participation in the licences will be: JKX (40% and operator), Aurelian (30%) and Sorgenia (30%).
Sorgenia’s continued participation through the exploration drilling phase will require an additional contribution of up to US$0.675 million in the first two exploration wells expected to be drilled at the end of 2009 and in early 2010.
A Letter of Intent signed between JKX, Aurelian and Gold Point Energy ("GPE") in July 2008 envisaged a similar transaction for the Golitza licences. However, GPE was unable to meet the terms of the Letter of Intent.