JKX Oil & Gas PLC December 2016 Monthly Production Report (3346U)
17 January 2017 - 7:06PM
UK Regulatory
TIDMJKX
RNS Number : 3346U
JKX Oil & Gas PLC
17 January 2017
17 January 2017
JKX Oil & Gas plc
("JKX", the "Company" or the "Group")
December 2016 Monthly Production Report
December November % Change 12 months 12 months % Change
2016 to December to
2016(3) December
2015
-------------------------- --------- --------- --------- ------------- ---------- ---------
Total production
(boepd(1) ) 9,954 9,746 2.1% 10,083 8,996 12.1%
-------------------------- --------- --------- --------- ------------- ---------- ---------
Ukraine (boepd) 3,840 4,095 (6.2)% 4,001 4,325 (7.5)%
- Average gas production
(MMcfd(2) ) 18.5 19.7 (6.1)% 18.6 21.0 (11.4)%
- Average oil and
condensate production
(boepd) 761 814 (6.5)% 902 823 9.6%
-------------------------- --------- --------- --------- ------------- ---------- ---------
Russia (boepd) 6,114 5,651 8.2% 6,082 4,670 30.2%
- Average gas production
(MMcfd) 36.3 33.5 8.4% 36.1 27.7 30.3%
- Average condensate
production (boepd) 65 63 3.2% 65 48 35.4%
-------------------------- --------- --------- --------- ------------- ---------- ---------
Summary
-- Average Group production for December 2016 was 9,954 boepd,
2.1% higher than in the previous month. Average annual production
was 12.1% higher in 2016 than it was in 2015.
-- In Hungary, well Hn-2ST (sidetrack) was successfully
completed on the Hajdunanas IV mining plot. This is the first
drilling operation completed since JKX assumed operatorship in
November 2014. The Hn-2ST well tested 1.5 MMcfd from the Pannonian
Pegasus sands (1051-1055m MD(4) ) and 2.8 MMcfd from a lower
Pannonian sand interval (1082 - 1088m MD). The latter is a newly
discovered productive horizon in the field. Gas sales are expected
from early February at an initial rate of 1.8 MMcfd, after a
production and sales break of more than three years. Assessment of
reserves following the well test is underway and the production
forecast and development plan will be adjusted accordingly.
-- In Ukraine, gas production was adversely affected by hydrates
in flow lines caused by cold weather. The Group continued the
implementation of its field development plan (FDP) for the
Rudenkivske field. After a successful workover, another Rudenkivske
well (NN47) located in the north of the field tested gas and
condensate from the V-25 interval in the Visean sands - the main
focus of the FDP. The well tested an initial maximum rate of 16.9
MMcfd and 668 boepd of condensate on a 137/64(th) " choke prior to
declining to 11.5 MMcfd of gas and 255 boepd of condensate within
36 hours. Preliminary estimates of gas initially in place are 0.44
Bcf(5) . More information will be provided once production rate has
stabilized. In addition, gas lift is currently being implemented at
well NN16 to restore production and increase overall recovery.
-- In Russia, Well 25 and Well 27 were acidized resulting in increased gas production.
On December 21, 2016 Ukraine's Parliament passed legislation
reducing the royalty on oil production from a maximum of 45% to
29%. Disappointingly, the proposal to reduce the gas royalty from a
maximum of 29% to 12% for new wells, which was passed at the first
reading, was excluded from the second reading and therefore failed
to pass into law. The Company continues to believe that reducing
gas production taxes is a critical step to making Ukraine's gas
sector attractive for investors, which, in turn, will support the
Government's stated goal of energy independence. JKX will continue
to work with the Government and other stakeholders in 2017 to
reduce gas production taxes in order to increase investment in the
sector.
(1) boepd - Barrels of oil equivalent per day
(2) MMcfd - Million cubic feet per day
(3) unaudited
(4) MD - Measured depth
(5) Bcf - Billion cubic feet
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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