15th May 2014 12:36
LONDON (Alliance News) - JKX Oil & Gas PLC Thursday said that its production increased by 50% in the first quarter of 2014 as its Elizavetovskoye field in Ukraine began production but noted that its gas sales prices have been hit by a fall in the Ukrainian currency.
The Eastern Europe-focused oil and gas exploration and development company said its production increased to 10,235 barrels of oil equivalent per day during the period from 6,844 barrels of oil equivalent per day a year before.
The company, which partly operates in Ukraine's Poltava region east of the Dnieper river, said its Ukraine production in the first quarter was 4,653 barrels of oil equivalent per day, which was enhanced by the start-up of the major Elizavetovskoye field in January and the second well at the site coming on-stream in March.
However, JKX said production at its Russian operations were lower in the first quarter as tubing leaks forced delays for repairs, while there was no production from its Hungarian operations in the first quarter due to a water breakthrough problem.
The company anticipates average production in its second quarter to be roughly 10,000 barrels of oil equivalent per day.
JKX said that oil, gas and liquefied petroleum gas prices remain strong in Ukraine but gas realisations have been affected by a recent devaluation of the Ukrainian hryvnia, meaning the company's overall realised gas price during the period was down 31% to USD6.28 per million cubic feet from USD9.15 per million cubic feet.
Ukraine has been destabilised in recent months by a change of leadership in the country, the annexation of its Crimea region by Russia, and civil conflict in the east near the border with Russia, but JKX said it has been unaffected by the recent activity.
"Despite the difficult political situation in the east of the country, our operations and commercial activity in Ukraine continue to be unaffected," Chief Executive Paul Davies said in a statement.
JKX Oil & Gas shares were up 1.3% at 59.25 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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