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JKX gains licence for Ukrainian field upgrade and prepares to double output

29th September 2014

JKX Oil & Gas has announced that it has completed Phase 1 of the production facility upgrade in its Elizavetovskoye field and has been awarded a 20-year production licence for the field

JKX gains licence for Ukrainian field upgrade and prepares to double output
The new production licence is valid for 20 years and replaces the existing five-year exploration licence which was 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 Paul Davies, JKC chief executive. “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."

The Phase 1 upgrade doubles the plant capacity to 30 MMcfd, and includes debottlenecking, improved metering, enhanced condensate separation and the addition of a stand-alone gas-powered electricity supply.

Phase 2 will be completed in the fourth quarter and is designed to increase the flexibility of the plant by adding compression and a low pressure gas train.

Well E-301 began production from the A2 carbonate reservoir in early January this year and was followed by well E-302 in March. Average production from the two wells in the second quarter of 2014 was 10.6 MMcfd, with 18 bpd condensate.

The plant upgrade has doubled the condensate yield from the production stream.

Drilling of well E-303, targeting the underlying G7-G12 sandstone reservoirs, has just been completed at a total depth of 4,406 metres, and is now being tested. Results are expected in due course.

The new production licence is valid for 20 years and replaces the existing five-year exploration licence which was due to expire at the end of November. The licence covers an area of 70.8 square kilometres.

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