JKX Output Drops in Q1 Year on Year
UK-listed eastern Europe gas producer JKX said April 13 that average production for the first quarter fell 7.3%, to 8,749 barrels of oil/d, which is 0.6% higher than in the last quarter of 2017 but 7.3% lower than in the first quarter of 2017.
Ukrainian gas production in the first quarter of 2018 was 16.7% lower than in the first quarter of 2017, largely owing to natural field decline, but 6.7% higher than in the last quarter of 2017.
The increase on Q4 2017 resulted from the production enhancement program started in late 2017. Well M158 ST was drilled to its target depth and evaluation of data and completion operations will be finalised in the second quarter. Work on the production enhancement program, including workovers of state owned wells, is continuing including drilling of the infill well E308 at the Elyzavetivske field in the second quarter of 2018.
In Russia, production has remained relatively stable compared to both the first and fourth quarters of 2017. Natural decline was kept to a minimu.
In central Europe, the process of divesting the Hungarian assets is continuing. Meanwhile, the company has now relinquished its 25% stake in four exploration licenses in Slovakia.
JKX made a scheduled payment to bondholders of $6.9mn in February 2018, reducing the outstanding principal amount from $16.0 million to $10.7mn.
As was previously reported, JKX' wholly-owned subsidiary Poltava Petroleum Company (PPC) has identified the first six wells from the Ukrgazvydobuvannya (UGV) abandoned well stock that are in the PPC licensed areas, to carry out repair works for subsequent gas extraction. According to PPC's geologists, the recovery rates of abandoned wells by means of sidetracking and workovers could boost gas extraction. In addition, PPC is preparing work programmes for the next four wells, which will be submitted for UGV consideration in the near future.
The company is now pursuing a very risk-averse approach to production after costly production experiments and the legal battles of the past year.