12 Dec 2016 07:00
12 December 2016
JKX Oil & Gas plc
("JKX", the "Company" or the "Group")
November 2016 Monthly Production Report
| November2016 | October2016 | % Change | 11 months toNovember 2016 | 11 months toNovember 2015 | % Change |
Total production (boepd1) | 9,746 | 9,900 | (1.6)% | 10,126 | 8,745 | 15.8% |
Ukraine (boepd) | 4,095 | 3,734 | 9.7% | 4,028 | 4,331 | (7.0)% |
- Average gas production (MMcfd2) | 19.7 | 17.6 | 11.9% | 18.7 | 21.0 | (11.0)% |
- Average oil and condensate production (boepd) | 814 | 808 | 0.7% | 917 | 828 | 10.7% |
Russia (boepd) | 5,651 | 6,167 | (8.4)% | 6,098 | 4,415 | 38.1% |
- Average gas production (MMcfd) | 33.5 | 36.6 | (8.5)% | 36.2 | 26.2 | 38.2% |
- Average condensate production (boepd) | 63 | 65 | (3.1)% | 65 | 46 | 41.3% |
Summary
· Average Group production for November 2016 was 9,746 boepd, 1.6% lower than the previous month.
· In Russia, a routine acid stimulation on Well 27 was delayed due to mobilising a different service provider, which led to decreased month-on-month production. Following the acid stimulation, Well 27 production averaged 16 MMcfd.
· In Ukraine, the month-on-month production increase was driven by the beneficial impact of the NN16 workover. Gas flow stabilized at 1.8 MMscf/d of gas, 13.7 stb/d of condensate.
· In Hungary, the MB-806 rig was mobilised to the Hajdunanas Hn-2 well location on November 29. Operations to sidetrack the Hn-2 well, access the remaining Pannonian reservoir gas and test the oil potential of the underlying Miocene volcanoclastic sequence, which was previously productive in the Hn-1 well, will commence in early December.
· On 5 December Viktor Gladun was appointed as the General Director of JKX's Ukrainian operating subsidiary, Poltava Petroleum Company. Viktor has more than 13 years' experience of working in the energy industry in Ukraine.
On December 6, 2016 Ukraine's Parliament passed the first reading of Law # 5132, which amongst other things, reduces Ukraine's gas production tax from a maximum of 29% to 12% for new wells.
Tom Reed, CEO of JKX, commented, "We welcome this initiative by the Government of Ukraine which aims to make Ukraine's gas sector an attractive destination for investors and stimulate gas production in order to realize the strategic goal of energy independence by 2020. There are a number of stages still to go in the process, but if passed, the new law will have a material impact on the Group's plans for investment in Ukraine and, specifically, on the implementation of the field development plan for the Rudenkivske gas field."
As announced by the Company on 21 September in the Operational Update, JKX's revised Ukrainian field development plans show that Rudenkivske has the potential to recover up to 600 billion cubic feet of gas over the field's lifetime with plateau production reaching 110 million standard cubic feet per day (18,300 barrels of oil equivalent per day) and will require a total investment of approximately US$660 million.
1boepd - Barrels of oil equivalent per day
2MMcfd - Million cubic feet per day
This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.
ENDS
JKX Oil & Gas plc +44 (0) 20 7323 4464
Russell Hoare, Chief Financial Officer
Stockdale Securities +44 (0) 20 7601 6100
Robert Finlay, Daniel Harris
EM Communications +44 (0) 20 3709 5711
Stuart Leasor, Jeroen van de Crommenacker