JKX Makes Output Gains in Russia & Ukraine
London-listed JKX Oil & Gas has reported a further 11% climb in production in the first quarter to 10,996 boe/d, it reported on April 15, with growth driven by higher extraction rates in both Ukraine and Russia.
Average output in Ukraine was up 7% at 5,361 boe/d year on year (yr/yr). Production of gas was up only 1% at 715,000 ft3/d, whereas extraction of oil and condensate surged 38% to 1,155 boe/d. JKX netted 5,635 boe/d of output from Russia, marking a 16% increase yr/yr. Gas flows in the country were up 16% at 946,000 ft3/d and condensate up 15% at 56 boe/d.
JKX operates a cluster of fields in Poltava in eastern Ukraine, along with the Koshekhablskoye field in southern Russia. It was working in Hungary as well but agreed to sell its assets there in March.
After a series of problems relating mainly to taxes and licences for some years, the junior producer reported a surge in revenues and profits last year on the back of higher output. It is also debt free after making a final $5.8mn repayment in February, and had $14.2mn in cash and cash equivalents at the end of March, along with an oil and gas inventory valued at $2.4mn.