JKX Oil reports bump in first quarter production

(Sharecast News) - JKX Oil & Gas reported an 11% improvement in group production in its first quarter on Wednesday, to 10,996 barrels of oil equivalent per day (boepd), up from 9,907 boepd year-on-year.
The London-listed firm said group production was flat compared to the previous quarter, with an increase in Russia offsetting a decrease in Ukraine.

In Ukraine, it said one additional new well was completed in the first quarter, being IG143, while a further two sidetracks, being R101 and IG130, were scheduled to come online during April.

It added that in Russia, well 20 had been successfully killed, and well 18 production increased following a second acid job in January.

A total of $14.2m of cash and cash equivalents was held, with an oil and gas inventory totalling around $2.4m, as at 31 March.

The group said it was now debt-free, after the final bond payment of $5.8m in February.

On the subject of its disputed rental fees, JKX said claims issued by the Ukraine tax authorities for additional rental fees for 2010 and 2015 were being contested through the country's court process.

It said final resolution of the 2010 rental fee claim case was expected in the coming months.

"As previously reported, four of the eight 2015 cases were closed in favour of JKX's subsidiary in Ukraine, Poltava Petroleum Company," the board said in its statement.

"Final resolution of the remaining 2015 rental fee claims cases is expected during 2021."

Looking at its international arbitration award, JKX said the award, directing the State of Ukraine to pay $11.8m plus interest and $0.3m costs to JKX, had now been successfully legally recognised in Ukraine, with the company having 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.

"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," the board added on the subject of the ongoing global coronavirus pandemic.

At 1205 BST, shares in JKX Oil & Gas were down 5.26% at 18p.