JKX delays Russia gas ramp-up until end-3Q12

JKX Oil & Gas (JKX LN) received the final permit to operate its Koshekhablskoe field in Russia, the company announced in a press release yesterday. It also said a ramp-up in production in Russia was postponed until the end of 3Q12 as the W-27 well was being side-tracked after tests indicated a blockage downhole due to the extended shut-in period.

Roman Dmytrenko: JKX successfully tested its W-27 and W-25 wells, which were shut-in until the commissioning of a gas processing facility at the Koshekhablskoe field in 2Q12. The reopening of both wells in May revealed a partial blockage of the W-25 well, which requires redrilling. The company’s recent operations update indicated the same problem with its W-27 well, which also has to be redrilled by the end of 3Q12. Altogether, the re-drilling of the two wells at the Koshekhablskoe field could delay the start of full-scale production in Russia until the end of 2012.