Hungary Blocks JKX Sale

Hungarian authorities have refused to clear the sale by JKX Oil & Gas of its assets in the country, the London-listed junior reported on February 18, meaning the transaction will not go ahead.

JKX agreed terms for the $2.9mn sale of its Hungarian subsidiary Folyopart Energia (Riverside Energy) to Cyprus-registered Starhol Holding in March last year. The deal had been expected to close in a matter of weeks, but the process was delayed because of the coronavirus crisis. Hungarian authorities have refused to consent to the sale, due to legislation introduced as a result of the pandemic, JKX said.

"Despite this development JKX will continue to explore other options in relation to Riverside in line with our previously announced strategy of focusing our portfolio on our most prospective opportunities," JKX CEO Victor Gladun said in a statement.

JKX announced plans in early 2018 to withdraw from Hungary, where it operates six production licences. The company also flows gas at the Koshekhablskoye field in southern Russia and at a cluster of fields in Ukraine's eastern Poltava region. It produced 10,238 barrels of oil equivalent/day in 2020, down 5% year on year. It extracted 5,389 boe/d in Russia and a further 4,849 boe/d in Ukraine.