JKX posts fall in production but leap in prices

JKX has posted a year-on-year first-quarter fall in oil and gas production, although this was offset with soaring gas and oil prices.

Production in the first three months of 2012 totalled 7,330 barrels of oil equivalent per day (boepd) (2011 Q1: 8,910). Oil production fell 23.3% from 2,246 barrels of oil per day (bopd) to 1,725bopd, while gas production totalled 33.6m cubic feet per day (mcfd) (2011 Q1: 40.0).

The company said it expects production in the second quarter to reach 8,500 boepd.

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The realised gas price leapt 50.4% from $8.25 yo $12.41 per million cubic feet, while the realised oil price increased by 8.1% from $92.29 to $99.80 per barrel.

On the same day the company reported that commercial gas delivery from the Oshekhablskoye field in southern Russia has commenced, meaning the company is now able to focus on the next phase of the field.

JKX also announced that its wholly-owned subsidiary, YGE, has been awarded the Giorgievskoye exploration licence in the Republic of Adygea, southern Russia, ensuring that the whole of a previously mapped field area is now secured under licences held by the company.

NR