JKX granted three 35-year production licences

JKX Oil & Gas plc (JKX) has reported that it has been granted three 35-year production licences (mining plots). The licences cover an area of approximately 75 km² within its former Hernad I & II exploration licence areas in north-eastern Hungary. The licences are wholly owned by JKX.

• The existing Hajdunanas-IV production licence, which encompasses the Hajdunanas Field, has been extended to the north-east to include an extension to the Miocene play productive in the Hajdunanas-1 well. The licence extension covers 15 km², increasing the total area of the licence to 25 km².
• The Tiszavasvari-IV production licence extends over 44 km² and is centred on the 2010 discovery well Tiszavasvari-6. This well encountered a hydrocarbon column of more than 300 m in a small fault block adjacent to a larger up-dip fault block which provides considerable additional upside potential.
• The Hajdunanas-V production licence covers an area of 15 km² and incorporates the Chevelle structure, and has been defined by the presence of significant gas shows in Pannonian reservoir rocks intersected down-dip of the mapped closure during the drilling of the Tiszavasvari-6 well.

JKX has submitted three further production licence applications on other areas within the former Hernad I and II exploration licence areas. JKX anticipates confirmation of further awards by year-end.

JKX Chief Executive, Dr Paul Davies, said: "The award of these production licences marks the transition from exploration to appraisal and development of our Hungarian assets. With a farmout process underway for all current and potential licences, we are looking forward to a significant increase in activity during 2016."

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/exploration/17112015/jkx-receives-three-35-year-production-licences-1748/