JKX holds a 34.3 per cent working interest in 11,290 acres in the West Huxley (Deep) Unit in Shelby County, East Texas. The operator is Newfield Exploration.

In 2001, drilling off the first well, CDU 5, resulted in a gas discovery; however, production has declined significantly and is below initial expectations.

Currently, there remain a number of areas on the unit where it believed commercial quantities of hydrocarbons can be found below the unit’s James Lime target. The arrival of Newfield Exploration may provide further stimulus to the exploration project. However, JKX no longer views this acreage as core to its portfolio and will seek an exit at the appropriate time.