Britain's JKX Oil & Gas and Aurelian Oil and Gas have concluded a farm-in agreement with Italy's shareholder company Sorgenia for drilling in Bulgaria, the companies announced.

The agreement concerns the B Golitza and B1 Golitza licenses, which spread over 4,000 square kilometers in Southeastern Bulgaria, 60 kilometers of the coastal town of Varna.

Under the terms of the farm-in agreement, Sorgenia will acquire a 30% working interest in the Golitza licenses by contributing USD 2.4 M towards the 250sqkm 3D seismic survey acquired between October 2008 and January 2009, in addition to its equity interest.

Following the earning of Sorgenia's interest and subject to the approval of the Bulgarian authorities, participation in the licenses will be JKX with 40% interest and operator, Aurelian with 30% interest and Sorgenia with 30% interest.

JKX has said that Sorgenia's continued participation through the exploration drilling phase will require an additional contribution of up to USD 0.675 M in the first two exploration wells.

Drilling is expected to start at the end of 2009 or in early 2010.

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