JKX Oil & Gas PLC Trading Update (6536T)
05 July 2018 - 4:00PM
UK Regulatory
TIDMJKX
RNS Number : 6536T
JKX Oil & Gas PLC
05 July 2018
05 July 2018
LEI: 213800AS2I1XUAGQ6F27
JKX Oil & Gas plc
("JKX", the "Company" or the "Group")
Trading Update
Q2 Q1 Q on H1 H1 Y on
Q Y
% Change % Change
2018 2018 2018 2017
Total production (boepd(1)
) 8,707 8,749 (0.5)% 8,728 8,598 1.5%
Ukraine (boepd) 3,585 3,396 5.6% 3,491 3,766 (7.3)%
- Average gas production
(MMcfd(2) ) 16.7 16 4.4% 16.3 18.3 (10.9)%
- Average oil and condensate
production (boepd) 805 738 9.1% 772 718 7.5%
Russia (boepd) 5,030 5,263 (4.4)% 5,146 4,654 10.6%
- Average gas production
(MMcfd) 29.8 31.2 (4.5)% 30.5 27.6 10.5%
- Average condensate production
(boepd) 57 58 (1.7)% 58 50 16.0%
Hungary (boepd) 91 90 1.1% 91 178 (48.9)%
- Average gas production
(MMcfd) 0.51 0.50 2.0% 0.5 1.0 (50.0)%
- Average condensate production
(boepd) 7 9 (22.2)% 7 12 (41.2)%
Average Group production in the first half of 2018 was 8,728
boepd, 1.5% higher than in the first half of 2017.
Ukraine
Gas production in the first half of 2018 was 10.9% lower than in
the first half of 2017 partly due to natural decline, while oil
production in the first half of 2018 was 7.5% higher than in the
first half of 2017 partly due to two successful electrical
submersible pump installations. Production of gas and oil was 4.4%
and 9.1% higher respectively in the second quarter of 2018 than in
the first quarter of 2018 due to the production enhancement
programme started in late 2017. Recent production enhancement
activities include the following:
-- Workover of the state owned well R3 in the Rudenkivske
license was successfully completed in June and the well currently
has a stable production rate of 6.6 MMcfd with a wellhead pressure
of 1,229 psig on a 40/64th" choke.
-- Workover of the M158 sidetrack (completed in March) in the
Molchanivske license was successfully completed in April, resulting
in an initial stable production rate of 0.5 MMcfd of gas and 106
barrels of oil per day.
-- Workover of the state owned well R22 in the Rudenkivske
license, was also successfully completed in April, achieving an
initial production rate of 1.0 MMcfd.
-- Workover of the state owned well EM52 in the Elizavetivske
license was successfully completed in May and the well is producing
0.8 MMcfd of gas.
-- A new well, E308 in the Elizavetivske license, was drilled to
a depth of 2,939m (expected target depth is 3,005m).
-- NN10, a leased well close to the boundary of the Ignativske
and Rudenkivske licences has been successfully worked over with
perforating expected to commence shortly.
Planned activity for the third quarter includes workover of R11,
a leased well in the Rudenkivske license, to follow up the
successful R3 workover. It is also planned to workover WM215, a
leased well in the West Mashivske license, and IG131 in the
Ignativske license.
Rental Fee Demands
The Notes to consolidated financial statements contained in the
2017 Annual Report (page 122) set out the details regarding Rental
Fee Demands. In relation to one of the 2015 PCC Rental Fee claims,
the Company has now been informed that a hearing has been set down
for 25th July 2018. This claim relates to additional tax liability
and associated penalties of approximately UAH64m (US$2.4m).
Russia
Production was 10.6% higher in the first half of 2018 than in
the first half of 2017 due to well 25 having been offline in the
first half of 2017. Production was 4.4% lower in the second quarter
of 2018 than in the first because of declines in wells 20 and 25.
To increase gas production it is planned to acidize wells 25 and 27
in July. A rig tender is in progress to find a suitable rig to
workover well 5, repair well 20 and workover well 18. If
successful, workover of wells 5 and 18 would increase the producing
well stock from 4 to 6 wells.
Hungary
The process of divesting the Company's assets in Hungary is
ongoing.
The Company's half year results will be issued on 30th July
2018.
(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
Ben Fraser, CFO
EM Communications +44 (0) 20 7002 7860
Stuart Leasor, Jeroen van de Crommenacker
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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