JKX Oil & Gas shares rise as production ramps up in Russia

JKX Oil & Gas

40.50p

17:14 04/01/22

-0.61%

-0.25p

JKX Oil & Gas updated the market on its operations on Monday, reporting that in Russia, the well 18 workover and sidetrack was completed on the Koshekhablskoye field.

The London-listed company said current production stood at 222 million cubic metres of gas per day, and nine barrels per day of condensate, for a total of 1,316 barrels of oil equivalent per day, with a wellhead pressure of 1,240 pounds per square inch on a 36/64 inch choke.

“Production has been slowly increasing since an initial acid job carried out on 9 December,” the JKX board said in its statement.

In Ukraine, as the company had previously reported in July, a judgement of the Kyiv Appellate Court was issued that satisfied the firm’s application for recognition of an international arbitration award for the State of Ukraine to pay $11.8m, plus interest, and $0.3m costs as described in the 2018 Annual Report.

“Since an appeal against this judgement has now failed, JKX is therefore now filing for enforcement of the award,” the board explained.

“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.”

At 1004 GMT, shares in JKX Oil & Gas were up 3.66% at 25.5p.