Gold Point Energy farms in to Bulgarian licenses

JKX Oil & Gas and Aurelian Oil & Gas PLC plan to bring in Gold Point Energy Corp. as a farm-in partner on the B Golitza and B1 Golitza licenses in Bulgaria.

Jul 2nd, 2008

Uchenna Izundu
International Editor

LONDON, July 2 -- JKX Oil & Gas and Aurelian Oil & Gas PLC plan to bring in Gold Point Energy Corp. as a farm-in partner on the B Golitza and B1 Golitza licenses in Bulgaria.

According to a letter of intent signed by the partners July 2, Gold Point Energy will earn a 20% interest in the assets provided it pays 40% of the costs of a 250 sq km 3D seismic survey and 40% of the costs for two shallow test wells.

"Gold Point's obligation to pay 40% of the seismic and drilling costs will be capped at $5 million, following which it will pay 20% of costs. The current estimate of the costs for the 3D survey is $7.5 million. Data acquisition is scheduled to commence in September and complete by the end of the year," said JKX.

JKX shares with Aurelian, on a 50-50 basis, the onshore B Golitza, which spans 3,200 sq km, and B1 Golitza license, which covers 971 sq km.

Once the transaction is completed, JKX will operate the licenses with a 40% stake; Aurelian will hold 40%; and Gold Point will have 20%.

JKX said the deal would help reduce its exposure to rising project costs and allow it to benefit from any future upside from this asset.

Contact Uchenna Izundu at uchennai@pennwell.com.

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