12th May 2005 11:04
JKX Oil & Gas PLC12 May 2005 12 May 2004 JKX Oil and Gas plc AGM STATEMENT Speaking at the Annual General Meeting today, JKX Oil & Gas' Chairman, the Rt.Hon. Lord Fraser of Carmyllie Q.C., said: "I am pleased to be able to report to you that your Company has continued todeliver increased turnover, profits and returns to shareholders in 2004, withUkraine remaining our main area of production and investment."This year has seen some commercial changes in the oil and gas marketing of ourUkrainian production. Domestic gas prices are continuing to rise and we arebenefiting by currently directing our production to domestic sales. Oil exportshave recently been curtailed by the Ukrainian government, but we are finding aready market for our high quality product within Ukraine at acceptable discountsto Brent dated prices. We believe that oil exports will resume by mid-year. "In Ukraine, our drilling programme continues apace. I can report that we havecompleted the sidetrack on Well R12 on the Rudenkovskoye Field and an extendedtesting programme is underway. We are currently testing one of a number of gasbearing zones and this is flowing to our production facility at the rate of 3MMscfd, with a wellhead flowing pressure of 1,150 psi through a 30/64-inchchoke. Our first new Well N70 on the Novo-Nikolaevskoye Field has been drilledand completed, and testing is underway on three prospective sands in the Viseanhorizon. The N75 rig has now moved back to the northern area of theMolchanovskoye field and is currently drilling at a depth of approximately2,200m on Well M152, where we are hopeful that we can emulate the success of ouroil producing Well M150; however, I should note that we are not seeing theextended level of production success from our new Wells M203 and M204 in themain area of Molchanovskoye that we have enjoyed from our earlier Well M202. "The addition of new licenses and reserves to our portfolio is our main focus in2005. We are continuing negotiations on further targets in Ukraine whilstprogressing the evaluation of our recently acquired Elizavetovskoye license. Weare confident that we will complete the planned seismic acquisition programme onour new Bulgarian licenses on schedule, and hopefully identify suitable drillinglocations before the year end. I am pleased to announce that we have farmed into the Karakilise licenses onshore Turkey, and also signed a Memorandum ofUnderstanding with Aladdin Middle East Ltd, the operator of the Karakiliselicenses, to participate potentially in one or more of the fifteen licenses itholds in Turkey. "I am confident that our strategy of acquiring new assets in and around our corearea of the states of the former Soviet Union can be executed whilst maintaininggrowth in return to shareholders. In this respect, I would draw to yourattention to the successful fulfilment of our maiden three-year dividend plan,in which your Board has recommended and, with your approval, will have paid anincreasing dividend on a year by year basis. It is your Board's intention toreview the absolute dividend level to be paid in the forthcoming periods. "I extend my appreciation and thanks to all shareholders of the Company fortheir continued interest and support." Press Enquiries Anthony Cardew Cardew Group 020 7930 0777Emma Consett This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
JKX.L