7 Jan 2016 07:00
JKX OIL & GAS plc ("JKX")
Revised Rate of Gas Production Tax in Ukraine
The Ukraine Government has passed legislation to reduce the gas production tax in Ukraine from 55 per cent. to 29 per cent. with effect from 1 January 2016.
JKX has been at the forefront of campaigning for this reduction which should restore the viability of new capital investment by independent gas producers in Ukraine. As previously stated, the Board has plans in place for reinstating previously suspended drilling programmes on its Ukrainian production licences.
The reduction does not have any effect on JKX's $270 million international arbitration claim for damages for the recovery of overpayment of production taxes from the Ukraine Government, which is the subject of a full hearing in July this year. The proposals made by Proxima Capital Group Inc., which include the removal of all of JKX's executive directors, could, however, severely prejudice the ability of JKX to pursue this claim.
For further information please contact:
Cardew Group T: 020 7930 0777
Anthony Cardew: M: 07770 720 389
Nadja Vetter: M: 07941 340436