JKX Output Up Further, Price Pressure Continues
London-listed junior JKX Oil & Gas managed a 13% quarter-on-quarter growth in production to 11,719 barrels of oil equivalent/day in the three months ending September 30, it said on October 9.
The company saw the greatest output gains at its core fields in northeast Ukraine. It produced 842,000 m3 per day of gas and 1,260 boe/day of oil and condensate at these assets, up 14% and 26% respectively compared with the previous quarter. Nine-month figures were even stronger, with gas production rising by 55% to 765,000 m3/day and liquids up by 33% at 1,033 boe/day.
JKX extracted a further 5,502 boe/day of hydrocarbons in Russia during July to September, up 10%. This volume included 924,000 m3/day of gas and 62 boe/day of liquids.
JKX is undertaking a five-year drilling and workover plan in Ukraine, initiated in 2018. Like other Ukrainian operators, though, it has come under pressure this year from a dramatic slump in domestic gas prices. Its average realised gas price in the country fell further in the third quarter by 19% to $175/1,000 m3. Prices over the nine months were down 21% yr/yr at $226/1,000 m3.
JKX also operates exploration assets in Hungary, but is seeking to exit the country.