JKX Oil & Gas announced Monday that it has upwardly revised its proven and probable reserves for its Elizavetovskoye Field in the Ukraine.
The proven and probable reserves were revised to 22bn cubic feet (3.7m barrels of oil equivalent), with a further 20m barrels of oil equivalent of net prospective resources in the licence.
This followed long-term testing of the legacy East Machevksa 53 well under a joint production agreement between JKX's wholly owned subsidiary Poltava Petroleum Company (PPC) and the well owner and former operator of the field.
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KX Chief Executive, Dr Paul Davies, said: "We are very pleased that the data collected from our joint activity with the Ukrainian state production company has demonstrated both the materiality of the 2P reserves and the significant prospective resources on our Elizavetovskoye licence."
In a statement the company explained that PPC acquired the Elizavetovskoye licence in November 2004 and finalised the joint production agreement for the three legacy wells on the licence in late 2011. It restored the M-53 well to production in April 2012 and will consequently receive 33% of the production from it. The well continues to flow at 2.7m cubic feet per day on a restricted choke.
PPC is now proceeding with a five well development of the licence and initial drilling of the first new well is scheduled for mid-year ahead of installation of new production facilities in the third quarter. First gas is anticipated in the fourth quarter of 2013.
The share price rose 1.65% to 61.50p by 09:55 on Monday.
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