8th Apr 2009 15:15
6 Cavendish Square, London W1G 0PD, England, UK
Tel: +44 (0)20 7323 4464 Fax: +44 (0)20 7323 5258
Web site: http://www.jkx.co.uk
FOR IMMEDIATE RELEASE 8 April 2009
JKX OIL & GAS plc ("JKX")
ANNOUNCES
BULGARIAN FARM-IN AGREEMENT
JKX Oil & Gas plc ("JKX") is pleased to announce 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.
Aurelian Oil & Gas plc is an exploration and production company listed on the London Alternative Investment Market. Aurelian was founded in 2002 by its Managing Director, Michael Seymour, and is focussed on the Central and Eastern European oil and gas markets.
Sorgenia E&P SpA is the exploration and production company of the Sorgenia Group, a leading private operator in the Italian power and natural gas market. This farm-in to the Golitza licences is Sorgenia's first asset deal after its decision in late 2008 to enter the upstream business and create a vertically integrated energy group.
ENDS
For further information please contact:
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Catherine Maitland / Matthew Law
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Cardew Group
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020 7930 0777
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Related Shares:
JKX.L