The Golitza -1 exploration well is being plugged and abandoned as a dry hole at a total depth of 4,522m in the Lower Triassic.

All three objective horizons in the Jurassic and Triassic were evaluated at close to their prognosed true vertical depths, but logs indicated that none are hydrocarbon bearing. The measured final depth was shallower than planned due to a combination of lower than anticipated hole angle and the absence of shows in the deepest reservoir sequence which obviated the need for further drilling.

The well results support the structural model and confirm the geological sequence beneath the Miocene age Balkan Thrust Front. However, the absence of hydrocarbons in the structure suggests that its relationship with the regional source rock maturity and migration model requires further study.

Evaluation of the Golitza licences continues and additional seismic acquisition is planned for 2008. Exploration will now be focussed on the gas bearing structures in the coastal Tertiary Basin and the definition of prospects north west of the Golitza -1 well location.

JKX has a 50% interest in the B and B1 Golitza exploration licences through its wholly owned subsidiary JKX Bulgaria Ltd, which is the designated operator. The remaining 50% is held by Balkan Explorers Bulgaria Limited, a wholly owned subsidiary of Aurelian Oil & Gas PLC.