(Alliance News) - JKX Oil & Gas PLC on Monday said total production increased in the second quarter, boosted by operations in Ukraine.
Shares in JKX were up 3.8% at 28.02 pence each in London on Monday morning.
London-based JKX is an emerging market exploration and production company with a focus on eastern Europe.
Total production in the second quarter was 9,332 barrels of oil equivalent per day, up 2% from 9,117 boepd in the prior quarter. However, production for the half year was 9,225 boepd, down 11% year-on-year from 10,445 boepd.
The company saw a 7% increase in production from Ukraine quarter-on-quarter. This is partly due to IG149, a new well in the Ignativske field, drilled and brought into production in the period. The well has produced an average of 962 boepd since starting production on May 21, the company said.
The firm holds net cash of USD36.5 million, up from USD14.5 million a year ago. The company's oil and gas inventory also increased in value to USD4.4 million from USD1.7 million in the prior half year.
JKX said its Ukrainian subsidiary Poltava Petroleum Co is still contesting a court decision saying it owes royalties to a local tax authority. Poltava will not have to pay anything before a supreme court hearing, expected in late 2021.
Separately, JKX filed to collect the USD12.1 million owed by the Ukraine government in an international arbitration award. That will not be reflected in the accounts "until there is further clarity on the process for, and likely success of, enforcing collection," JKX said.
By Amrit Sahota; newsroom@alliancenews.com
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