1st May 2009 07:00
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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 |
1 May 2009
JKX Oil & Gas plc
INTERIM MANAGEMENT STATEMENT
FOR
THE FIRST QUARTER ENDING 31 MARCH 2009
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Q1
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Q1
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Change
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2009
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2008
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Production (boepd)
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9,876
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11,494
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(14%)
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Gas Production (MMcfd) |
41
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41
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0%
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Oil Production (bopd)
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3,083
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4,687
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(34%)
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Realised gas price ($ per Mcf)
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7.03
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5.18
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36%
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Realised oil price ($ per barrel)
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35.30
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81.03
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(56%)
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JKX Chief Executive, Dr Paul Davies, said:
"While overall production fell, gas production remained constant and gas realisations increased by 36%. Demand for our gas in Ukraine has strengthened through the first quarter and I anticipate that we will maintain our present level of gas realisations through at least the current quarter. We look forward to seeing the test production rates from our initial well workovers in our Russian project and the preliminary results of our fraccing tests in Ukraine around the half year, supported with exploration and development updates in Ukraine and Hungary."
For further information please contact:
|
Catherine Maitland / Anthony Cardew |
Cardew Group |
020 7930 0777 |
Most of the northern area of the Rudenkovskoye Field lies beyond the existing 3D seismic coverage and an additional 30 sq km 3D seismic acquisition programme commenced in April. This survey will permit more accurate identification of the multiple sand bodies and potential drilling locations in the main Tournasian sandstone. It should also aid interpretation of the underlying Devonian sandstone penetrated by Well R101 but which had to be isolated due to the high pressures encountered.
Well N71 was drilled in the Novo-Nikolaevskoye Field area to test a sequence of Visean sandstones and logged hydrocarbons in two layers. Initial production from the secondary target, the lower reservoir, flowed at a rate of 1.9 MMcfd and 118 bpd of condensate. The flow has declined steadily since and it is expected that the well will be recompleted in the upper primary reservoir in the second quarter.
Well M206 was the first well to specifically target the Tournasian T2 carbonate/sandstone in the centre of the Molchanovskoye Main field area. It found 39 metres of net pay and, after a very high initial clean-up rate, it tested at a stabilised rate of 4.2 MMcfd with 393 bpd of condensate.
Well M207 was drilled to test an isolated Devonian sandstone fault block in the west of the Molchanovskoye Main field area. Logs indicated in excess of 18 metres of net pay and test production confirmed that the block had not been depleted. The well tested at a stabilised rate of 4.9 MMcfd with 409 bpd of condensate.
Well M166, a horizontal infill well to the Devonian sandstone, is currently being drilled in the Molchanovskoye North field area.
The TW-100 workover rig carried out recompletions in Molchanovskoye Main wells M204 and M205, and Rudenkovskoye wells R101 and R102 during the period and is now working over Well I79.
Exploration Well Z3 on the Zaplavskoye licence, located to the west of the Ignatovskoye Field, encountered an 80m gross gas bearing T2 carbonate interval at a pressure in excess of 5,000 psi. The CTU was unable to reach the reservoir from inside the tubing and the workover rig will be required to pull and re-run the completion at the earliest opportunity to permit stimulation and testing of this well.
Exploration Well Z2 on the Zaplavskoye licence, located to the south of the Molchanovskoye field, encountered thicker than expected T2 carbonate with the primary sandstone objective being deeper than prognosed. The reservoir proved to be tight and unproductive and the well will be abandoned.
RussiaDevelopment and Workover Activity: Yuzhgazenergie ("YGE"), JKX's wholly owned subsidiary, has started the initial 3 well workover operation in the Koshekhablskoye field and the programme for the redevelopment of the gas processing facility (GPF) is underway.
Well 27 has been worked over, re-logged and completed in the Oxfordian limestone. The Kremco-900 rig is currently working over Well 20 which will also be completed in the Oxfordian limestone. Both wells are scheduled for testing in early June. The rig will then work over the Callovian sandstone interval in Well 9. The workover programme is currently planned to recommence in late 2010 to enable YGE to build up production in accordance with the schedule agreed with the Russian authorities.
Site clearance on the GPF is complete and the land is being levelled and prepared for construction operations. The units for the 70 man camp have been installed and are now being hooked up.
Design work on the GPF and related infrastructure is nearing completion and the second half of the year will entail procurement and manufacture of equipment, with construction and installation commencing in 2010. First gas is anticipated in the fourth quarter 2010.
HungaryDevelopment Activity: The Hajdúnánás Field development is underway and first gas is expected in July 2009. The completion will take production from the two discovery wells to a simple separator and then via a 14.5 km export line to an existing facility for input to the Hungarian gas pipeline system. JKX holds 50% equity in the field.
Hungary: Hernád licences: JKX holds 50% equity in the northern Pannonian Basin Hernád licences. Interpretation of the 348 sq km of 3D seismic data acquired over the south eastern portion of Hernád I has identified additional prospects to the Hajdúnánás field. The Tiszatarjan-1 exploration well was spudded in late 2008 to investigate the first of these and targeted a Miocene Volcanoclastic reservoir 20km south west of the Hajdúnánás discovery. The well reached TD in January with oil being recovered from the Miocene objective but at sub-commercial rates. The well has been temporarily abandoned pending a forward programme of formation stimulation
Nyírség Licence: JKX and its co-venturer in the Hernad licences, Hungarian Horizon Energy ("HHE"), farmed into the adjacent Nyírség licence operated by PetroHungaria in late 2008. JKX and HHE each received a one-third equity share in 120 sq km of the Nyírség licence In exchange for acquiring 3D seismic over the area. Acquisition was completed in early 2009 and an initial drilling location has been identified for drilling in the third quarter.
Veszto Licence: JKX has farmed-in for a 25% interest in a 15.6 sq km area of the Veszto exploration licence held by HHE in the east Hungarian Pannonian Basin. A 3D seismic survey covering the entire 219 sq km licence has been completed and interpreted with two prospects identified. The target horizons are amplitude supported Miocene clastic and volcanoclastic intervals within four-way dip closed structures. The first well has been drilled and has logged gas in both the deeper primary target and a shallower secondary target. High pressures were encountered and the well is being suspended. Testing of the secondary target will await the drilling of a follow-up well planned for the third quarter which will utilise a higher rated drilling spread to investigate fully the deeper high pressure formation.
Bulgaria: The 250 sq km 3D seismic survey across the east-central parts the B and B1 Golitza licenses began last October and finished in February 2009. Processing is now in progress with the goal of identifying a drilling prospect by the third quarter. Sorgenia E&P SpA ("Sorgenia") has agreed to take a 30% working interest in the Golitza licences. 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%).
Slovakia: The remaining 108 km of the 238 km regional 2D seismic planned for 2008 will be acquired in 2009. The data to be acquired covers the difficult terrain in the southeast of the licences. Interpretation of the 2008 data from the north western licence should enable the participants to begin the process of high grading the potential contained within these three large licences.(JKX: 25%).
ENDS
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