12th May 2005 11:06
JKX Oil & Gas PLC12 May 2005 12 May 2005 JKX OIL & GAS PLC ANNOUNCES FARM-IN TO EXPLORATION LICENSES, ONSHORE TURKEY JKX Oil & Gas plc ("JKX") announces that it has farmed into the Karakiliseonshore exploration licenses, close to the city of Diyarbakir in south-easternTurkey. This group of three licenses which cover a total of 1,230 sq km containsone oil discovery and a number of strong leads. JKX will earn a 30% interest in the permits by paying 30% of the costs expendedon discovery well Karakilise 1 and the associated production facilities, andfunding its 30% share of the next planned appraisal well, Karakilise 2. Totalcost to JKX of US$2.25 million has been agreed for this initial participation,of which US$0.75 million will be paid from production revenue. Karakilise 1 was drilled in 2003 and initially flowed 300 barrels per day of 32oAPI oil from the cretaceous Mardin formation, a fractured carbonate which is theprimary producing horizon in this area; currently, the well is producing atapproximately 60 barrels of oil per day. Karakilise 2 is scheduled to be drilledduring the second quarter of 2005 with the goal of proving up reserves ofbetween 10 and 20 million barrels of oil in this structure. The Karakilisediscovery is close to a number of fields discovered by Shell between 1960 and1980. Successful completion of Karakilise 2 will be followed by the drilling of atleast one further well in 2005 and acquisition of 2-D seismic to define furtherthe main Karakilise structure and to firm up an adjacent lead. The permits are currently held by: Aladdin Middle East Ltd, (AME), 80%; AvenueEnergy Inc, (Avenue), 15%; and Ersan Petrol Sanayii A.S, (Ersan), 5%. AME, theoperator, is a US registered company with a number of exploration licenses andproducing properties in Turkey; AME and its associated companies also own anumber of drilling rigs and can provide a wide range of oilfield services.Ersan, a Turkish registered company, is an associate of AME. Avenue is a USregistered company which holds interests in a number of exploration licenses inTurkey. JKX is acquiring its 30% from AME (24.5%) and Avenue (5.5%). JKX has also entered into a Memorandum of Understanding with AME onparticipation in additional exploration activities in Turkey, and in thepotential utilisation of AME's drilling services on JKX Ukrainian licenses. JKX Oil & Gas plc is an oil and gas exploration and production company listed onthe London Stock Exchange. The company has license interests in Ukraine,Georgia, Italy, Bulgaria, Turkey, Russia and the United States. ENDS For further information please contact: Anthony Cardew / Emma Consett Cardew Group 020 7930 0777 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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