29th Mar 2018 16:01
LONDON (Alliance News) - JKX Oil & Gas PLC on Thursday reported a decline in production, as it said that 2017 was "challenging", despite recording a narrowed loss and increased revenue.
The Ukraine and Russia oil producer said its pretax loss narrowed to USD16.0 million in 2017, compared with USD38.2 million it reported the prior year.
Administrative expenses declined significantly to USD17.9 million from USD26.7 million, while its gain on foreign exchange rose to USD1.4 million from USD431,000 the year earlier.
Revenue grew 3.5% to USD76.4 million from USD73.8 million year-on-year, thanks to rising oil and gas prices. The oil price it received improved to USD64.26 per barrel from USD45.94, while its gas price rose to USD6.72 per thousand cubic feet from USD5.92 in 2016.
Overall production decreased 14% to 8,658 barrels of oil per day, however, from 10,083 barrels the year before, as a result of well being offline in Russia for four months due to a fire on the workover rig.
"Ukraine and Russia will remain our main areas of operation," said JKX Oil & Gas Chairman Hans Horn. "I am now confident that if we continue to persevere, together we will succeed in returning JKX to growth and financial success."
Shares in JKX Oil & Gas were trading 9.5% higher at 23.00 pence per share on Thursday.
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JKX.L
