JKX’s Production Keeps Rising Despite Turmoil in Ukraine

UK-based JKX said it has not been strongly affected by the political tensions in Eastern Ukraine, adding that production levels continued to improve into the first half of the year. 

“The first half of the year saw a continuing improvement in the Company’s production levels, in line with our strategy in both Ukraine and Russia, with the contribution of the first two wells in our new Elizavetovskoye field demonstrating the potential of this asset to significantly raise the level of our Ukrainian production going forward,” JKX Chief Executive, Paul Davies, commented on Monday.  

According to the note released by the company to announce results, average production increased by 12% to 10,126 boepd with respect to 9,040 boepd in the first six months of 2013.

The company stepped up production mainly in Russia. At the same time, Elizavetovskoye field in Ukraine commenced production and averaged more than 9 MMcfd in the period. 

“Revenues in the period have been adversely affected by lower gas realisations and lower oil production in Ukraine. However, we continue to benefit from strong oil, condensate, gas and LPG realisations which are expected to remain firm through the rest of the year,” Davies added.