JKX reports on a successful test of its Z-05 well in Ukraine

JKX Oil & Gas (JKX LN) reported on October 14 it completed tests on the Z-05 well in its Zaplavskoye field in Ukraine. At a stabilized rate, the well flowed at 4.6 MMcfd of natural gas and 328 bpd of condensate (the total rate is 1,095 boepd, we estimate). The Z-05 well has been recently sidetracked after the company had found no sufficient flow rate from its initially targeted reservoir.

Alexander Paraschiy: This is the third positive news from JKX’s Ukrainian assets this year, after the successful test of the NN-71 well in July 2013 and the M-166X well in May. If the new well is successfully put into operation, it will allow JKX to increase its production rate in Ukraine to over 6,000 boepd in 4Q13 – good progress versus the estimated 4,236 boepd rate in 2Q13. More encouraging news may follow as the company has yet to report the results of a multi-stage frac at its R-103 well in Ukraine, scheduled to be announced in late October.