17 Apr 2019 07:00
17 April 2019
JKX Oil & Gas plc
("JKX", the "Company" or the "Group")
Quarterly Operations Update
Highlights
Q1 2019 average daily production was 9,907 boepd, 11.6% greater than in Q4 2018. March 2019 monthly production of 10,200 boepd, strongly supported by the IG103 side track that has averaged 1,598 boepd in Q1, is the highest monthly average Group production since June 2016.$10.5m cash held at 31 March 2019, after payment of $5.3m principal and $0.7m interest to the convertible bondholders in February. In addition to cash we are holding oil and gas inventory of approximately $4.8m in value. Both Ukraine and Russia continued to generate operational cash flow, although Ukrainian gas prices were 21.6% down compared to the previous quarter, allowing us to continue investing in the fields as planned.In Ukraine the new well WM3 has been drilled to a total depth of 3,570m. The rig was released on 11 April, and perforating is planned within a week followed by testing.
Production
| Q1 | Q4 | Q on Q % Change | 1Q | 1Q | Y on Y % Change |
2019 | 2018 | 2019 | 2018 | |||
Total production, boepd | 9,907 | 8,874 | 11.6% | 9,907 | 8,749 | 13.2% |
Ukraine, boepd | 5,009 | 3,707 | 35.1% | 5,009 | 3,396 | 47.5% |
- Average gas production, Mcmd | 709 | 515 | 37.6% | 709 | 453 | 56.5% |
- Average oil and condensate production, boepd | 837 | 676 | 23.8% | 837 | 738 | 13.4% |
Russia, boepd | 4,873 | 5,083 | (4.1)% | 4,873 | 5,263 | (7.4)% |
- Average gas production, Mcmd | 819 | 854 | (4.2)% | 819 | 883 | (7.4)% |
- Average condensate production, boepd | 56 | 56 | 0.2% | 56 | 58 | (3.2)% |
Hungary, boepd | 25 | 84 | (70.2)% | 25 | 90 | (72.2)% |
Prices realised |
|
|
|
|
|
|
Ukraine |
|
|
|
|
|
|
- Average gas price, $/Mcm | 269 | 343 | (21.6)% | 269 | 280 | (3.9)% |
- Average oil price ($/bbl) | 59 | 82 | (28.0)% | 59 | 72 | (18.1)% |
Russia |
|
|
|
|
|
|
- Average gas price, $/Mcm | 56 | 55 | 1.8% | 56 | 65 | (13.8)% |
In Ukraine:
IG103 side track production continues to exceed expectations with current production at 1,449 boepd without a significant drop in pressure. To date the well has produced 171 kboe.New well WM3 has been drilled to a total depth of 3,570m and a total of 21m of net hydrocarbon thickness has been determined from log interpretation, across three separate reservoir intervals.Rig is currently relocating to drill new well NN81.The 3D seismic survey of the West Mashivska field is complete and the data is currently being processed.
In Russia the Well 5 workover has resumed following the repair of the damaged drill pipe. Attempts to pull all 972m of the fish have so far been unsuccessful. Operations are ongoing to recover as much as possible.
Rental fee claims
Claims issued by the Ukrainian tax authorities for additional rental fees are being contested through the Ukrainian court process. There have not been any material changes in the status of any of the claims since the 2018 Annual Report was issued.
International arbitration award
In February 2019 JKX filed an application for the recognition and enforcement of an international arbitration award as described in the 2018 Annual Report. Ukraine's Ministry of Justice has filed its objections. Filings of both parties await court consideration.
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
Ben Fraser, CFO
EM Communications +44 (0) 20 7002 7860
Stuart Leasor, Jeroen van de Crommenacker