JKX Oil & Gas PLC Quarterly Operations Update (4173B)
08 October 2020 - 5:00PM
UK Regulatory
TIDMJKX
RNS Number : 4173B
JKX Oil & Gas PLC
08 October 2020
8 October 2020
JKX Oil & Gas plc
("JKX", the "Company" or the "Group")
Quarterly Operations Update
Highlights
-- Group average production of 10,245 boepd for Q3 2020,
4% higher than during Q2 2020.
-- Drilling to resume in Ukraine with IG146 in October.
-- Net $18.8m of cash and cash equivalents (up 30% on Q2
2020), and oil and gas inventory of approximately $2.6m
in value (up 53% on Q2 2020), held at 30 September 2020.
Production
Q3 Q2 Q on 9 months 9 Y on Y
Q months %
% Change Change
2020 2020 2020 2019
Total production, boepd 10,245 9,894 4% 10,378 10,668 (3)%
Ukraine, boepd 4,727 4,963 (5)% 5,016 5,535 (9)%
- Average gas production,
Mcmd 639 666 (4)% 673 765 (12)%
- Average oil and condensate
production, boepd 965 1,045 (8)% 1,054 1,033 2%
Russia, boepd 5,519 4,931 12% 5,362 5,125 5%
- Average gas production,
Mcmd 926 829 12% 901 861 5%
- Average condensate production,
boepd 67 54 24% 62 58 7%
Hungary, boepd 0 0 0% 0 8 (100)%
Prices realised
Ukraine
- Average gas price, $/Mcm 105 107 (2)% 123 226 (46)%
- Average oil and condensate
price ($/bbl) 49 31 (58)% 42 61 (31)%
Russia
- Average gas price, $/Mcm 52 52 0% 5 3 57 (7)%
In Ukraine:
-- Drilling to resume in October with IG146, a new well targeting
the Devonian in the Ignativske field.
-- One remedial workover and one abandonment were completed
with the workover rig in Q3 2020. A second remedial workover
on a Rudenkivske well carried out in Q3 2020 has been
completed at the start of October.
-- The decline in Ukraine gas production quarter-on-quarter
has been reduced with successful additional perforations
made in IG142 at the start of Q3 2020.
In Russia:
-- Wells 5, 18 and 27 were acidised in August and September
using a new lower cost contractor. All acid jobs were
completed successfully.
Liquidity
In $m 30 Sep 30 Jun 31 Dec 30 Jun 31 Dec
2020 2020 2019 2019 2018
Total cash and cash equivalents 18.8 14.5 20.6 10.7 19.2
Bond liability (principal
and interest accrued) - - (5.7) (5.7) (11.3)
Net cash 18.8 14.5 14.9 4.9 7.9
Approximate sales value
of gas and oil inventory 2.6 1.7 4.1 8.0 9.9
Our Ukrainian subsidiary held 2.8 million cubic metres of gas
and 44.4 thousand barrels of oil inventory available for immediate
sale at 30 September 2020. Approximate sales value of gas and oil
inventory is calculated using average sales prices for September
2020.
Rental fee claims
Claims issued by the Ukrainian tax authorities for additional
rental fees for 2010 and 2015 are still being contested through the
Ukrainian court process as explained in the 2019 Annual Report. As
previously reported, four of the eight 2015 cases were closed in
favour of JKX's subsidiary in Ukraine, Poltava Petroleum Company
(PPC). Final resolution of the remaining 2015 rental fee claims
cases is expected during 2021.
International arbitration award
The international arbitration award, directing the State of
Ukraine to pay $11.8m plus interest and $0.3m costs to JKX as
described in the 2019 Annual Report, has now been successfully
legally recognised in Ukraine and JKX has filed for collection. No
possible future benefit that may result from this award will be
reflected in the accounts until there is further clarity on the
process for, and likely success of, enforcing collection.
Covid-19
We continue to monitor the impact of Covid-19 developments on
our industry, operations, staff and contractors and are confident
about the safety measures we put in place.
boepd - Barrels of oil equivalent per day
bopd - Barrels of oil per day
Mboe - Thousand barrels of oil equivalent
Mcm - Thousand cubic metres
MMcm- Million cubic metres
Mcmd - Thousand cubic metres per day
psi - pounds per square inch
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
Dmytro Piddubnyy , CFO
EM Communications +44 (0) 20 7002 7860
Stuart Leasor, Jeroen van de Crommenacker
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