UK JKX Wins Hungarian Acreage

UK producer JKX Oil & Gas has won three more 35-yr production licences in Hungary, it said January 21, adding some 124 km² to its original Hernad 1&2 exploration licence areas and bringing its total in that area to six.

Two are in gas-prone areas. The Pely I production licence extends over 18 km² and is centred on the 2010 discovery well Pely-2. This exploration well tested gas from Miocene-age Szolnok Formation sandstones. There are further prospects adjacent to the discovery within the licence area.

The Jaszkiser II production licence covers an area of 6 km² and incorporates the Jabba structure. It has been defined by the presence of amplitude anomalies consistent with those encountered at the successful Pely-2 well

The third is oil-prone: the Emod V production licence extends over 100 km² and includes the Mezokeresztes field, which was shut in during the 1970s. JKX says up to 90% of the mapped oil originally in place – about 15mn bls – remain in-situ.

CEO Paul Davies said that winning the additional production licences completed the process undertaken when JKX took full control of the Hernad licences. The awards clarify the position for potential farm-inees and we are looking forward to the completion of the farm-out process and renewed activity on our Hungarian licences during 2016."

Crunch vote date looms

The board of JKX is now less a week away from an extraordinary general meeting called by Proxima, which is seeking to replace seven of JKX’ directors with five nominees of its own. JKX claimed a morale-boosting victory January 20, announcing that Institutional Shareholder Services (ISS), the global leader in corporate governance, has recommended that JKX shareholders should vote against all resolutions proposed by Proxima.

ISS recommendations confirm JKX’ view that Proxima has not presented a justifiable case for its proposals and so ISS concludes that support for Proxima's requests is not warranted, said JKX.