16th Dec 2019 12:40
(Alliance News) - JKX Oil & Gas PLC said Monday the well workover work in Russia has been completed and it is looking to enforce payment for its tax dispute in Ukraine.
The company said the work on its well 18 in the Koshekhablskoye field has been completed and it is currently producing 222 thousand cubic metres per day of gas and 9 barrels per day of condensate - which combined equals 1,316 barrel of oil equivalent per day.
"Production has been slowly increasing since an initial acid job carried out on December 9," the JKX said.
Elsewhere, JKX said it is filing for an enforcement of the the Ukrainian Supreme Court ruling in favour of the company in July.
The final judgement recognised an international arbitration award for the State of Ukraine to pay USD11.8 million, plus USD300,000 interest, to JKX over a tax dispute.
The Ukrainian taxman originally issued JKX subsidiary Poltava Petroleum Co a tax demand in 2014, from which PPC claimed relief as well as damages.
PPC had eight separate claims against Ukraine, and JKX made a USD30.1 million provision for additional fees covering all eight. In May, the Kharkiv Appellate Administrative Court confirmed an earlier judgement the tax claims in one of the cases were illegal.
"Since an appeal against this judgement has now failed, JKX is therefore now filing for enforcement of the award. No recognition will be made in the financial statements of any possible future benefit that may result from this award until there is further clarity on the likely success of this enforcement," JKX added.
Shares in JKX Oil & Gas were 3.7% higher in London on Monday at 25.50 pence each.
By Paul McGowan; [email protected]
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