JKX Oil & Gas with assets in Ukraine and Russia in the first quarter of 2021 reduced the average daily production of hydrocarbons by 17% compared to the first quarter of 2020, to 9,177 barrels of oil equivalent per day (boepd), the company said on the London Stock Exchange website on Wednesday.
Production in Ukraine fell by 28%, to 3,843 boepd, including gas production by 28%, to 517,000 cubic meters per day (Mcmd), while oil and condensate by 31%, to 799,000 boepd.
Production of hydrocarbons in the Russian Federation decreased by 5% and amounted to 5,334 boepd, including gas production by 5%, to 869,000 cubic meters per day, and condensate by 11%, to 61 boepd.
JKX indicates that compared to the previous quarter, production decreased by 7%, including in Ukraine by 12% and in Russia by 3%. In particular, gas production in Ukraine decreased by 13%, oil and condensate by 8%.
The company explained the reduction in production in Ukraine due to no drilling activity taking place in the first quarter of 2021 and the loss of IG142 will which produced an average of 321 boepd before it stopped producing in the middle of February. JKX clarified that the drilling rig has remained on free of charge standby with the drilling of IG149 commencing on April 9.
The company also indicated that compared to the first quarter of 2020, the average gas price in Ukraine jumped by 43%, to $214 per 1,000 cubic meters (compared to the fourth quarter, the growth was 27%), for oil and condensate by 22%, to $60 per barrel (an increase of 22% compared to the fourth quarter).
The situation was worse in Russia, where the price of gas fell by 7% year-on-year to $52 per 1,000 cubic meters (although by the fourth quarter it grew by 4%).
The company’s cash and cash equivalents were $28.4 million at the end of March, compared with $24.3 million a quarter earlier. In addition, JKX possessed oil and gas reserves of the Ukrainian subsidiary Poltava Petroleum Company (PPC) in the amount of $2.9 million (a quarter earlier – $2.2 million), which is 1.6 million cubic meters and 38,400 barrels of oil and condensate.
JKX Oil & Gas is engaged in the exploration and production of hydrocarbons in Ukraine and the Russian Federation. Poltava Petroleum Company, owned by JKX, is one of the largest non-state oil and gas companies in Ukraine. It holds five production licenses and one for geological exploration, including pilot production.
JKX Oil & Gas with assets in Ukraine and Russia in 2020 reduced average daily production of hydrocarbons by 5% compared to 2019, to 10,238 barrels of oil equivalent per day (boepd), the company said on the website of the London Stock Exchange.
Production in Ukraine decreased by 13%, to 4,849 boepd, in particular gas production fell by 15%, to 653,000 cubic meters per day (Mcmd), while oil and condensate by 5%, to 1,007 boepd.
Production of hydrocarbons in Russia increased by 4% and amounted to 5,389 boepd, in particular gas production to 905,000 cubic meters per day, condensate to 61 boepd.
JKX points out that in the fourth quarter of last year, compared to the previous quarter, production decreased by 4%, to 9,825 boepd due to a drop in production in Ukraine by 8%, to 4,351 boepd. In particular, gas production in Ukraine fell by 7%, to 592,000 cubic meters per day, oil and condensate by 10%, to 965 boepd.
JKX notes that the reduction in production is associated with a significant reduction in drilling and workover, but indicates that two new wells were drilled in Ukraine in the fourth quarter – IG146 on Ihnativske field with a current flow rate of 6 million cubic meters per day and 35 boepd and the side part of NN75 on Novo-Mykolaivske field with a current flow rate of 80 boepd.
JKX Oil & Gas with assets in Ukraine and Russia in 2020 reduced average daily production of hydrocarbons by 5% compared to 2019, to 10,238 barrels of oil equivalent per day (boepd), the company said on the website of the London Stock Exchange.
Production in Ukraine decreased by 13%, to 4,849 boepd, in particular gas production fell by 15%, to 653,000 cubic meters per day (Mcmd), while oil and condensate by 5%, to 1,007 boepd.
Production of hydrocarbons in Russia increased by 4% and amounted to 5,389 boepd, in particular gas production to 905,000 cubic meters per day, condensate to 61 boepd.
JKX points out that in the fourth quarter of last year, compared to the previous quarter, production decreased by 4%, to 9,825 boepd due to a drop in production in Ukraine by 8%, to 4,351 boepd. In particular, gas production in Ukraine fell by 7%, to 592,000 cubic meters per day, oil and condensate by 10%, to 965 boepd.
JKX notes that the reduction in production is associated with a significant reduction in drilling and workover, but indicates that two new wells were drilled in Ukraine in the fourth quarter – IG146 on Ihnativske field with a current flow rate of 6 million cubic meters per day and 35 boepd and the side part of NN75 on Novo-Mykolaivske field with a current flow rate of 80 boepd.
JKX Oil & Gas with assets in Ukraine and Russia in the nine months of 2019 reached an average daily production of 10,668 barrels of oil equivalent (boepd), which is 19% more than the average figure for the nine months of 2018.
According to the company’s report on the London Stock Exchange, production in Ukraine in January-September 2019 rose by 51% compared to January-September 2018, to 5,535 boepd, in particular that of gas by 55%, to 765,000 cubic meters per day, oil and condensate by 33%, to 1,033 boepd.
At the same time, the average gas price for the indicated period of 2019 in Ukraine decreased by 21% compared to the same period in 2018, to $226 per 1,000 cubic meters, oil by 15%, to $61 per barrel.
The company said that in the third quarter of this year, compared with the second quarter, the average daily production grew by 13%, to 11,719 boepd, including in Ukraine by 16%, to 6,217 boepd. In particular, the growth of gas production in Ukraine amounted to 14%, to 842,000 cubic meters per day, oil and condensate by 26%, to 1,260 boepd.
“This is the highest level of oil production for the quarter and since the beginning of the year for the period from 2013,” the report said.
The increase in oil production in the third quarter of 2019 is the result of drilling two new wells: NN81 and IG142, JKX said.
At the same time, gas prices continued to decline in the third quarter, to an average of $175 per 1,000 cubic meters compared with $215 per 1,000 cubic meters in the second quarter and $269 per 1,000 cubic meters in the first quarter.
JKX Oil & Gas is engaged in the exploration and production of hydrocarbons in Ukraine, the Russian Federation, Hungary, and Slovakia.
JKX Oil&Gas with assets in Ukraine and Russia in the first quarter of 2019 reached average daily production of 9,907 boepd, which is 11.6% more than in the fourth quarter of 2018 and 13.2% more than in the first quarter of 2018.
The company reported on the London Stock Exchange on Wednesday that March 2019 monthly production of 10,200 boepd, strongly supported by the IG103 side track that has averaged 1,598 boepd in Q1 2019, is the highest monthly average group production since June 2016.
In Ukraine, production grew by 35.1% in Q1 2019 compared with Q4 2018, to 5,009 boepd, including a 37.6% rise in gas production, to 709,000 cubic meters a day, and a 23.8% rise in oil and condensate production, to 837 boepd.
Average price of gas in January-March 2019 in Ukraine fell by 21.6% on Q4 2018, to $269 per 1,000 cubic meters and the price of oil – by 28%, to $59 per barrel.
JKX said that the company held $10.5 million cash at March 31, 2019, after payment of $5.3 million principal and $0.7 million interest to the convertible bondholders in February. In addition to cash we are holding oil and gas inventory of approximately $4.8 million in value.
JKX Oil & Gas with assets in Ukraine and Russia in 2018 saw $15.26 million in net profit compared with net loss of $17.66 million in 2017. This is the first profit of the company since 2013.
According to unaudited preliminary results of the company posted on the London Stock Exchange (LSE) on Friday, its revenue grew by 24.4%, to $92.87 million benefitting from high sales prices in Ukraine.
Average price of gas in 2018 was 29.6% higher than in 2017, being $307.80 per 1,000 cubic meters, that for oil – 15.1% more ($74 per barrel), and LPG – 16.5% more ($544 per tonne).
According to the document, the company moved into to net cash position of $8.2 million ($9.7 million net debt position in 2017).
Last year the company’s capital expenditure totaled $11.8 million, including $11.1 million related to Ukraine.
In 2018, group average production was 8,937 boepd (2017: 8,657 boepd), an overall increase in production of 3.2%. In Ukraine the figure grew by 4.8%, to 3,677 boepd, in Russia by 2.9%, to 5,169 boepd and in Hungary it fell by 30.5%, to 91 boepd.
JKX Oil & Gas is engaged in exploration and production of hydrocarbons in Ukraine, Russia, Hungary, and Slovakia.
The largest shareholders of JKX are Eclairs Group of Ihor Kolomoisky and Hennadiy Boholiubov with 27.47% of the shares, Keyhall Holding with 11.42%, Neptune Invest & Finance Corp with 12.95%, and Interneft Ltd with 6.6%.
