JKX making 'good progress'

Eastern Europe focused JKX Oil & Gas has started the year positively with good progress made on all development and exploration assets during the first quarter, but the shares fell today as oil prices slid again.Group production hit 11,384 barrels of oil equivalent per day (boepd) in the three months to 31 March, an increase of 15% on the same time last year, despite severe winter weather in Ukraine. Gas output was up 14% on last year and oil production up 17%.The bank balance is helped by a realized oil price 76% higher than its 2009 equivalent at $61.60 a barrel.Meanwhile, a 9% rise in Q1 production in Ukraine to 10,358 boepd leaves the company anticipating average production in the second quarter of about 11,500 boepd. "The company is embarked on an extensive capital programme this year with the aim of significantly raising production levels in 2011," said CEO Paul Davies. "The company has started the year positively with good progress being made on all development and exploration assets in the first quarter including the key development projects of Rudenkovskoye in Ukraine and Koshekhablskoye in Russia.""We continue to seek attractive opportunities to add to our exploration and development portfolios."