LONDON (Alliance News) - JKX Oil & Gas PLC on Thursday said its average daily production increased in 2018, despite a 5.7% decrease in output in the fourth quarter.
The hydrocarbon exploration and production company said its average daily production was 8,937 barrels of oil equivalent per day in 2018, 3.2% greater than the year before.
Average production in the final quarter of 2018 was 8,874 barrels of oil equivalent daily, down from 9,410 barrels reported in the third quarter, as a result of a reduction in workover and drilling activity.
In addition, WM215, a leased well in Ukraine, continued its sharp output decline through October before reaching a stable rate of only 1 million standard cubic feet per day. The R3 well, also in Ukraine, continued its decline quarter-on-quarter to 800,000 standard cubic feet per day from 3.1 million standard cubic feet per day.
Overall, average daily output in Ukraine fell by 7.6% to 3,707 barrels of oil equivalent daily, from 4,013 barrels the prior quarter.
On a positive note, the average realised oil and condensate price rose by 12% in Ukraine quarter-on-quarter to USD82 per barrel from USD73. The average gas price improved by 13% to USD9.71 per thousand cubic feet.
In Russia, production has reduced due to only one acid job taking place in the final quarter of 2018, on well 27. Thus, average daily production was 4.1% lower in the fourth quarter at 5,083 barrels of oil equivalent a day, compared to 5,302 barrels produced daily in the third quarter.
The average gas price declined slightly to USD1.56 per thousand cubic feet from USD1.59 in the prior quarter.
JKX Oil & Gas said the process of divesting the its Hungarian assets is continues, as the company has decided to refocus on its operations in Ukraine and Russia.
The stock was trading 14% lower on Thursday at 37.15 pence a share.