JKX Oil and Gas has been awarded a long-term license for work in Ukraine after finishing a phase on its Elizavetovskoye project.
The exploration and production company completed Phase 1 of the project and was given a a 20-year production license that will replace the original five-month license that expires in November.
The upgrade doubled the plant capacity to 30MMcfd and includes debottlenecking, improved metering, enhanced condensate separation and the addition of a stand-alone gas-powered electricity supply. Phase 2 is due to be finished in the fourth quarter and will increase the flexibility of the plant by adding compression and a low pressure gas train.
Work began on well E-301 in January this year while well E-302 went under way in March. The two wells averaged a production of 10.6MMcfc, with 18 barrels produced per day before the recent plant upgrade doubled its yield.
Dr Paul Davies, JKX chief executive, said: “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.
“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.”
Drilling of well E-303, targeting the underlying G7-G12 sandstone reservoirs, has just been completed at a total depth of 4,406m and is being tested. Results will be released shortly.
