JKX Oil & Gas plc ("JKX") is pleased to announce that the remaining P+P reserves for its Elizavetovskoye Field near Poltava, Ukraine have been revised upwards to 22 BCF (3.7 MMboe) with a further 20 MMboe of net prospective resources in the licence.
The revisions follow long-term testing of the legacy East Machevksa 53 well (M-53) under a Joint Production Agreement ("JPA") between JKX's wholly owned subsidiary Poltava Petroleum Company ("PPC"), and the well owner and former operator of the field. The reserves revision is based on mapping and material balance data from this and the other wells on the field.
PPC acquired the Elizavetovskoye licence in November 2004 and finalised the JPA for the three legacy wells on the licence in late 2011. PPC restored the M-53 well to production in April 2012 and receives 33% of the production from it. The well continues to flow at 2.7 MMcfd on a restricted choke.
PPC is now proceeding with a five well development of the licence. A hot tap to the nearby gas trunkline has already been made and preliminary permitting for construction of the 11 km export line has been secured. Spudding of the first new well is scheduled for mid-year ahead of installation of new production facilities in the third quarter. First gas is anticipated in the fourth quarter of 2013.
JKX Chief Executive, Dr Paul Davies, commented:
"We are very pleased that the data collected from our joint activity with the Ukrainian state production company has demonstrated both the materiality of the 2P reserves and the significant prospective resources on our Elizavetovskoye licence."
JKX is an exploration and production company listed on the London Stock Exchange. The Company has licence interests in Ukraine, Russia, Hungary, Slovakia and Bulgaria.
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