Member Info for Krok

Production metric is irrelevant. Over half of JKX production is in Russia, which barely breaks even at EBITDA level

There are other factors, which make JKX a better investment at the moment. But today’s announcement by ENW can give the latter an edge

Nickel, finally you have started to have a clue))

ENW were really quick to get the court decision For the license they just acquired

And, at the same time, no news on VAS license litigation for more than 1,5 Years

Something wrong here

Great update from JKX today. We’ll see how ENW performed in 3Q

Qalbabbass, it was the Appeal Court, i.e. the 2nd instance court. The Supreme Court is the 3rd instance court and the final one

Ukrnafta now has one month to appeal to the Supreme Court

Butcoinbuyer, individual sentences make a lot of sense but overall you can’t see forest for the trees)) very vivid example of this)

Qalbabbass, fingers crossed it does not turn out to be a wishful thinking

If this winter is as warm as it was last year, gas prices can remain pretty much at current levels

Coventrykid, sold my entire holding in RPT last year. Realised ca. 30% loss, but still in the black given previous trades

Starting to accumulate now again, should go higher in winter months

But think JKX is a better option in the short-term. And VGAS is probably on par with ENW

So will probably invest 50% in JKX, 30% in ENW and 20% in VGAS. That said, it is pretty difficult to buy, all three are extremely illiquid

Just a couple of other things I forgot to mention previously

Enw is unable to resolve the license issue, just mumbling once a quarter that “there is nothing to report”

Come on, where is the court decision? What have they been doing for the last 1,5 years?

Also, they drill such deep and apparently complex wells that it takes them almost a year to complete. The cost of such wells is tremendous, will never pay back in the current gas price environment. Value dilution, as it is

Forget about cash - it has nothing to do with minority shareholders. It de-dacto belongs to Novinskiy

Unchanged cost of sales despite 20% drop in sales

35% increase in admin costs, $1.0 mn extra

$2.0 mn in charity costs, at a time of record low gas prices! Ridiculous as it is

Purchased some dodgy asset despite Ukrnafta’s clear warning not to

Negative free cash flow of over $5.0 mn for 6 months

Great company, indeed! The share price speaks for Itself

Continue dreaming

There will be no result of FSP, no one will buy vgas. So should not be in a hurry because of this

Time to buy/add JKX

Expect the following from them in the next 6-12 months:

- $12 mn tax recovery
- sale of the Russian asset (worth $20-30 mn)
- disposal of the UNB stake (probably to majority shareholders, minority stake discount hard to estimate but should be able to monetize some how - currently, it is not priced at all)
- looking to acquire new assets in Ukraine (easier that than done, but nonetheless)

Much more interesting now than RPT or CAD

Minimum 100 percent gain in the next 12 months, pretty confident in this

15mn for a 4.8 km gas well with ca 150 mcm daily gas production is way too high, economics of this well is not good

Seems that they spent ca $10 mn on the latest well, I think this is the reason for cash decrease

Their production before the well dropped so that the new well just replaced it

So we started the year with 53 mn cash. nine months later we only have 60 mn in cash, pretty much the same production and much lower gas prices

Not good

Haha, wishful thinking

Seems that Merill Lynch dumped them as they are too small/illiquid and hence they replaced ML with a small broker

May there be a margin call for him?

I just told that’s the actual increase is miserable, that has nothing to do with my expectations

But yes, I expected at least 10 mmboe of 2P

Last year’s report multipled the reserves

This one added less than 1,5 mmbbl, that’s less than 3% of existing 2P

Once again, that’s nothing

3 mmboe of 2P - great update?

That’s a disappointment, pretty much nothing

Nothing extraordinary in the results, the FCF is almost zero

2nd half should be better given increased production lately

Gas pruces are actually down on July by some 10% compared to June. Looking ugly, down 60% from last year highs