JKX Reports Half-Yearly Financial Results, Restates Strategy
JKX Oil & Gas’s strategy does not change despite the recent arm wrestling between the company’s management and the two major shareholders, with the JKX Chief Executive Paul Davies restating the intention to focus on production growth in Ukraine and expansion in Russia.
The UK-based company reported on Monday its half-yearly results, which depicted a mixed picture.
Revenue decreased from $103.0m in the first six months of 2012 to $91.3m in 2013, with operating cash flow registering a even bigger percentage drop to $43.2m. On the other hand, average production increased by 21% to 9,040 boepd and profit from operations passed from $0.5m to $9.4m. The company reported stronger results in its gas division, while the oil production registered a partial setback.
“These are a solid set of half-year results which underpin our ability to continue the transformation of JKX over the full year. In Russia we have established sustainable gas production with potential for substantial growth. We are making progress with expansion of the plant capacity,” said Davies in a note released on Monday.
JKX Chief Executive underlined also the importance of the Ukrainian activities.
“We achieved a milestone in June by beginning the multi-stage frac at our Rudenkovskoye field. We have already completed the first three out of the nine stages and anticipate initial results at the end of the third quarter this year,” commented Davies, referring to its nine-stage fracture stimulation project.
Earlier this month, JKX announced that well NN-71 in the NovoNikolaevskoye field in Ukraine has been successfully recompleted to the Visean V-15 sandstone reservoir. At the beginning of the month, JKX announced that multi-stage hydraulic fracturing operations on well R-103 has commenced in its Rudennkovkoye licence.
Davies fended off a bid to oust him by Eclairs and Glengary, the two top investors, in June. Eclairs is owned by Ukrainian duo Igor Klomoisky and Gennady Bogolyubov, while Glengary is controlled by Russian oligarch Alexander Zhukov.