JKX Oil & Gas PLC June 2017 Monthly Production Report (9229K)
13 July 2017 - 4:00PM
UK Regulatory
TIDMJKX
RNS Number : 9229K
JKX Oil & Gas PLC
13 July 2017
13 July 2017
JKX Oil & Gas plc
("JKX", the "Company" or the "Group")
June 2017 Monthly Production Report, and
Results of Phase 1 of Rudenkivske fracturing campaign
June May % Change 6 months 6 months % Change
2017 2017 to June to June
2017 2016
-------------------------- ------ ------ --------- --------- --------- ---------
Total production
(boepd(1) ) 7,667 7,847 (2.3)% 8,598 10,337 (16.8)%
-------------------------- ------ ------ --------- --------- --------- ---------
Ukraine (boepd) 3,443 3,837 (10.3)% 3,766 4,114 (8.5)%
- Average gas production
(MMcfd(2) ) 14.3 18.6 (23.1)% 17.9 19.2 (6.8)%
- Average oil and
condensate production
(boepd) 678 744 (8.9)% 717 923 (22.3)%
-------------------------- ------ ------ --------- --------- --------- ---------
Russia (boepd) 4,119 3,860 6.7% 4,654 6,222 (25.2)%
- Average gas production
(MMcfd) 24.4 22.9 6.6% 27.6 36.9 (25.2)%
- Average condensate
production (boepd) 46 44 4.5% 50 66 (24.2)%
-------------------------- ------ ------ --------- --------- --------- ---------
Hungary (boepd) 104 150 (30.7)% 178 - 100%
- Average gas production
(MMcfd) 0.6 0.9 (33.3)% 1.0 - 100%
- Average condensate
production (boepd) 8 5 60.0% 12 - 100%
-------------------------- ------ ------ --------- --------- --------- ---------
-- Average Group production for June 2017 was 7,667 boepd, a
2.3% month-on-month decrease and a 16.8% year-on-year decrease for
the first six months of the year. The year-on-year decrease was
largely due to the delayed workover of well 25 in Russia.
-- In Russia, gas production was higher than in May due to the
acid treatment on Well 27 completed in June. The workover of Well
25 is now complete. The well is still cleaning up and currently
producing at the rate of 7.8 MMscf/d (1300 boepd).
-- In Ukraine, gas production declined primarily due to well 6R
being worked over to install a monobore for fracturing resulting in
a reduction of production by 1.3 MMscf/d month-on-month. In
addition, EM53 on the Elizavetovskoye field also produced 0.6
MMscf/d less than in May, with other reductions being attributed to
natural field decline. NN22 workover was completed on the 25(th)
June 2017 with an initial rate of 8 MMscf/d and a WHP of 1420 psi
after 2 hrs of flow. The production rate has since declined to 1.4
MMscf/d, 10 boepd of condensate and 100 barrels of water per day. A
PLT has been run and potential for water shut-off, as well as
additional perforations is currently being assessed.
-- Initial results from the appraisal fracturing operations
carried out by Poltava Petroleum Company at the Rudenkivske field
in Ukraine were disappointing. Following 12 fracture stages at
wells 19R, R10, R25 and R6 measureable gas production has been
achieved only in 19R, with only trace production of gas in the
remaining wells. Fracture stages were placed successfully at a pace
of 2.3 days per stage, and at a cost of $230k per stage. However,
productivity in all four wells has been greatly inhibited by the
stimulation of previously un-identified water-bearing zones
intermingled with the target gas zones. The presence of water was
not identified using the existing Soviet era well logs during
planning. The significant amount of data received from this first
phase of appraisal is currently being analysed in order to target
gas-bearing zones more accurately in the future.
Tom Reed, advisor to the Board and to the acting CEO, Victor
Gladun, had the following comment: 'While the Company is
disappointed with initial results from the first phase of
fracturing operations, and has a lot of work to do to reassess the
contingent resources in the Rudenkivske field, I believe our team
has demonstrated a clear ability to transfer international
technology and unit costs to Ukraine. I am committed to helping
Victor and the Board through the next three months to ensure
maximum benefit from phase one of the appraisal program and that
the best possible field development plan is adopted going
forward.'
(1) boepd - Barrels of oil equivalent per day
(2) MMcfd - 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
This information is provided by RNS
The company news service from the London Stock Exchange
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