29th Sep 2014 07:50
LONDON (Alliance News) - JKX Oil & Gas PLC shares jumped in early trade on Monday after the group said it has completed the Phase 1 work on the upgrade of its production facility at the Elizavetovskoye field and said it has won a 20-year production licence for the field.
JKX shares rose 9.9% to 48.90 pence on Monday.
The Phase 1 upgrade will increase plant capacity to 30 million cubic feet per day, double the previous capacity. Phase 2 of the upgrade is set to be completed in the fourth quarter and will increase the flexibility of the plant by adding compression and a low pressure gas train, JKX said.
Well E-301 started production from the A2 carbonate reservoir in early January at the site, followed by E-302 in March. Average production from the two wells in the second quarter was 10.6 million cubic feet per day, with 18 barrels per day condensate.
The plant upgrade has doubled the condensate yield from the production stream, the company said.
In addition, JKX has won a 20-year production licence for Elizavetovskoye, which replaces its existing five-year licence due to expire at the end of November.
"The completion of Phase 1 of the plant upgrade, on schedule and on budget, is a significant step forward in the development of the Elizavetovskoye field," said JKX Chief Executive Paul Davies.
"The award of the production licence for the field by the Ukrainian authorities some months ahead of schedule is a welcome indication that our efforts to increase production at this difficult time for the country are recognised," Davies added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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