TIDMJKX
RNS Number : 9087L
JKX Oil & Gas PLC
18 January 2021
18 January 2021
JKX Oil & Gas plc
("JKX", the "Company" or the "Group")
Quarterly Operations Update
Highlights
-- Group average production of 10,238 boepd for 2020, similar
to 2019 despite significantly reduced drilling and workover
activity in 2020 compared to 2019.
-- Two wells drilled in Ukraine in Q4 2020, IG146 and a
sidetrack of NN75.
-- Net $24.5m of cash and cash equivalents, and oil and
gas inventory of approximately $2.2m in value, held
at 31 December 2020.
Production
Q4 Q3 Q on Q 12 months 12 Y on Y
% months %
Change Change
2020 2020 2020 2019
Total production, boepd 9,825 10,245 (4)% 10,238 10,748 (5)%
Ukraine, boepd 4,351 4,727 (8)% 4,849 5,584 (13)%
- Average gas production,
Mcmd 592 639 (7)% 653 769 (15)%
- Average oil and condensate
production, boepd 868 965 (10)% 1,007 1,058 (5)%
Russia, boepd 5,474 5,519 (1)% 5,389 5,158 4%
- Average gas production,
Mcmd 919 926 (1)% 905 867 4%
- Average condensate production,
boepd 64 67 (4)% 61 59 4%
Hungary, boepd 0 0 0% 0 6 (100)%
Prices realised
Ukraine
- Average gas price, $/Mcm 168 105 60% 132 206 (36)%
- Average oil and condensate
price ($/bbl) 49 49 0% 44 61 (28)%
Russia
- Average gas price, $/Mcm 50 52 (4)% 52 57 (9)%
In Ukraine:
-- The drilling of NN75 sidetrack, in the Novo-Nikolaevske
field, commenced on the 15th December and reached a
TD of 1,943m on the 28th December. Logs have been run
and indicate 3 separate sands in the V16 with a total
net hydrocarbon bearing thickness of 7.8m with an additional
1m of net hydrocarbon bearing thickness in the shallower
V15 reservoir. The deepest V16 sand containing 4m of
net hydrocarbon bearing thickness was perforated on
the 14th November with a current rate of 80 boepd. Additional
perforations will be added in due course.
-- IG146 was completed to the Devonian in Ignativske and
encountered 2.6m of logged net hydrocarbon bearing thickness.
After initially testing at an oil rate of 497 bopd and
a gas rate of 35 Mcmd in November the rate declined
and the well is currently producing 6 Mcmd of gas (35
boepd).
In Russia:
-- Following the successful acid jobs on Well's 5, 18 and
27 in Q3 2020 production from these wells has not declined
significantly resulting in the production from the Koshekhablskoye
field in Russia only reducing by 1% quarter-on-quarter.
Liquidity
In $m 31 Dec 30 Jun 31 Dec 30 Jun 31 Dec
2020 2020 2019 2019 2018
Total cash and cash equivalents 24.5 14.5 20.6 10.7 19.2
Bond liability (principal
and interest accrued) - - (5.7) (5.7) (11.3)
Net cash 24.5 14.5 14.9 4.9 7.9
Approximate sales value
of gas and oil inventory 2.2 1.7 4.1 8.0 9.9
Our Ukrainian subsidiary held 2.7 million cubic metres of gas
and 32.6 thousand barrels of oil inventory available for immediate
sale at 31 December 2020. Approximate sales value of gas and oil
inventory is calculated using average sales prices for December
2020.
Rental fee claims
Claims issued by the Ukrainian tax authorities for additional
rental fees for 2010 and 2015 are still being contested through the
Ukrainian court process as explained in the 2019 Annual Report.
Final resolution of the 2010 and remaining 2015 rental fee claims
cases is expected during 2021.
International arbitration award
The international arbitration award, directing the State of
Ukraine to pay $11.8m plus interest and $0.3m costs to JKX as
described in the 2019 Annual Report, has now been successfully
legally recognised in Ukraine and JKX has filed for collection. No
possible future benefit that may result from this award will be
reflected in the accounts until there is further clarity on the
process for, and likely success of, enforcing collection.
Covid-19
The Group has all necessary arrangements in place to ensure the
safe conduct of its business. We have implemented a number of
policies recommended by Governments in the countries of our assets
for the protection of our employees, as well as to help
minimization of the spread of coronavirus (Covid-19). Our first
priority is the safety and wellbeing of our staff. Our next
priority is supporting the local communities, especially where
there is a lack of medical assistance, and we have directed our
corporate and social responsibility projects helping to fight
further spread of Covid-19.
We continue to monitor the impact of Covid-19 developments on
our industry, operations, staff and contractors and are confident
about the safety measures we put in place.
boepd - Barrels of oil equivalent per day
bopd - Barrels of oil per day
Mboe - Thousand barrels of oil equivalent
Mcm - Thousand cubic metres
MMcm- Million cubic metres
Mcmd - Thousand cubic metres per day
psi - pounds per square inch
This announcement contains inside information as defined in EU
Regulation No. 596/2014 and is in accordance with the Company's
obligations under Article 17 of that Regulation.
ENDS
JKX Oil & Gas plc +44 (0) 20 7323 4464
Dmytro Piddubnyy , CFO
EM Communications +44 (0) 20 7002 7860, +44 (0) 7887 946719
Jeroen van de Crommenacker
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDFLFSSLFIELIL
(END) Dow Jones Newswires
January 18, 2021 02:00 ET (07:00 GMT)
Jkx Oil & Gas (LSE:JKX)
Historical Stock Chart
From Feb 2024 to Mar 2024
Jkx Oil & Gas (LSE:JKX)
Historical Stock Chart
From Mar 2023 to Mar 2024