IG149, a new well drilled in the Ignativske field in Ukraine, started production on the 21st May from the Devonian and reached a maximum oil rate of 1,280 bpd with 19 Mcmd of gas (1,391 boepd) on a 30/64th" choke. The well has averaged 777 bpd of oil and 80 Mcmd of gas (1,248 boepd) with a wellhead pressure of 1,139 psi over the first ten days of testing. IG149 was then shut-in for a 36hr pressure build-up which has confirmed insignificant depletion following ten days of production. The well has now been returned to production with a rate of 890 bpd of oil and 77 Mcmd of gas (1,340 boepd) and a wellhead pressure of 1,186 psi on a 30/64th" choke. Further testing will be carried out to determine the optimum choke setting to maximise oil recovery.

This result significantly exceeds expectations with only 3m perforated. Logging results from the Devonian indicate a total of 29.6m of net hydrocarbon thickness. At present only 3m of the oil rim has been perforated with a total of 23m of net hydrocarbon thickness remaining unperforated in the gas cap. This will remain unperforated at present to maximise oil recovery.

JKX Ukraine operations

In Ukraine JKX's wholly-owned subsidiary Poltava Petroleum Company (‘PPC’) is one of the largest non-state producers of oil and gas in Ukraine.

PPC holds 100% interest in five production licences in the Poltava region of Ukraine: Ignativske, Movchanivske , Novomykolaivske and Rudenkivske contain distinct fields which together cover 127sq.km. and form the Novomykolaivske Complex; and the Elyzavetivske production licence which covers an area of 104.7sq.km. and was issued in November 2014 for a period of 20 years.

PPC also holds the Zaplavska exploration licence within the Novomykolaivske Complex, which comprises a total exploration area of 173sq.km.

PPC was established in 1994, initially focusing its efforts on four fields located within the Novomykolaivske Complex located in the Poltava region of Ukraine. Production of commercial quantities of oil and gas began in 1995. JKX has maintained its leading position as one of the largest non-state producers of oil and gas within Ukraine.

PPC continues to be the only non-state oil and gas company with a connection to the Souyez pipeline which transports gas directly into Ukrainian and European markets.

KeyFacts Energy: JKX Oil & Gas Ukraine country profile