JKX Oil & Gas increased gas production in Ukraine's by 55% in 2019

The British JKX Oil & Gas, which owns JV Poltava Gas and Oil Company, increased its hydrocarbon production in Ukraine by 52% in 2019 compared to 2018 - from 3 677 barrels of oil equivalent per day (boepd) to 5584 boepd.

As the company reported on its website, in particular, their oil and condensate production in Ukraine increased by 41% (from 751 boepd to 1,058 boepd), gas - by 55% (from 497 thousand cubic meters to 769 thousand cubic meters per day).

According to Poltava Gas and Oil Company on its Facebook page, in 2019 it produced 280.7 million cubic meters of gas and 47.4 thousand tons of gas condensate, on top to 13.7 tons of LPG produced (22% more than in 2018).

Last year, JKX Oil & Gas invested more than $ 26 million into development, including $ 18 million in Ukraine and $ 8 million in Russia. Investments were entirely financed by operational cash flows albeit lower gas prices in Ukraine in 2019.

The company notes that the average gas prices in Ukraine in 2019 compared to the previous year decreased by 33% (from $ 308/thousand cubic meters to $ 206/thousand cubic meters), while in Russia they remained unchanged - at $ 57/thousand cubic meters. JKX Oil & Gas also reported the 18% drop in oil and gas condensate prices in Ukraine (from $ 74 to $ 61 per US oil barrel).

According to the company, in December 2019 they commissioned a new well WM4 at the West Mashivska gas field in Ukraine and and put it into commercial production. In January 2020 they also drilled Well № 82 at the Novomykolaivskoye gas field, which will start to produce in a while, the message said.

As of the end of 2019, Poltava Gas and Oil Company had 14 million cubic meters of gas for sale, according to a report by JKX Oil & Gas.

Overall, the Group's annual production in 2019 increased by 20% from 8,937 boepd to 10,748 boepd. In Russia, production remained at the level of the previous year - 5158 boepd. In Hungary, in 2019, JKX Oil & Gas increased its hydrocarbon production by 93% - from 6 boepd to 91 boepd.

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JKX Oil & Gas plc, whose shares have been listed on the London Stock Exchange since 1995, owns 100% of the Ukrainian-British joint venture Poltava Gas and Oil Company, which was established in 1994. PPGC is one of the leaders among private oil and gas companies in Ukraine. In September 2019, the Board of Directors of JKX Oil & Gas appointed Victor Gladun as the Group’s CEO.