2nd Jul 2008 14:31
FOR IMMEDIATE RELEASE 2 JULY 2008
JKX Oil & GAS PLC ("JKX")
ANNOUNCES
FARM-IN BY GOLD POINT ENERGY IN BULGARIA
JKX Oil & Gas plc ("JKX") announces that it and Aurelian Oil and Gas Plc ('Aurelian') have signed a letter of intent with Gold Point Energy Corp ('Gold Point') in relation to the B Golitza and B1 Golitza licences in Bulgaria, of which JKX and Aurelian respectively hold a 50% interest.
Under the terms of the letter, Gold Point will acquire a 20% working interest in the Golitza block on condition of paying 40% of the costs of a 250 sq. km 3D seismic survey plus 40% of the costs relating to two shallow test wells. Gold Point's obligation to pay 40% of the seismic and drilling costs will be capped at $5.0 million, following which it will pay 20% of costs. The current estimate of the costs for the 3D survey is $7.5 million with data acquisition scheduled to commence in September and completed by the end of the year.
In light of the rising costs of seismic work, today's announcement will reduce JKX's overall exposure to costs while positioning the Company well to benefit from any future upside from this asset. Following the earning of Gold Point's interest, participation in the block will be: JKX (40% and operator), Aurelian (40%) and Gold Point (20%).
Gold Point is a TSX listed company engaged in the exploration and development of oil and gas projects in the US, South America and Europe.
Aurelian is an AIM listed exploration and production company with licence interests in central and eastern Europe.
JKX Oil & Gas plc is an exploration and production company listed on the London Stock Exchange. The Company has license interests in Ukraine, Russia, Georgia, Bulgaria, Turkey, Hungary, Slovakia and the United States.
ENDS
For further information please contact:
|
Sofia Rehman / Matthew Law |
Cardew Group |
020 7930 0777 |
Related Shares:
JKX.L