JKX Looks Ahead

In preliminary annual results, JKX Oil & Gas noted that it has made steady process in a challenging year.

Chief Executive, Dr Paul Davies, commented:

“While 2010 has been a challenging year, we believe that we are positioned to deliver a step-change in performance during the coming 12 months.  Importantly, we are scheduled to commence production and revenue in Russia during the autumn of 2011, and we are also focused on increasing production in Ukraine, which remains the cornerstone of production. We remain confident in our long-term prospects and are committed to our strategy.”

The year’s highlights included the completion and testing of horizontal well R-103, Rudenkovskoye in Ukraine. The company noted that initial flow rates from well R-103 exceeded expectations. Well R-103 is the first of a series of horizontal wells designed to develop and further appraise the significant gas resources of the deep tight gas Rudenkovskoye reservoirs.

Progress was also made on redevelopment of Koshekhablskoye field in Russia, which is on track to commence gas production at the plant design capacity of 40 MMcfd.

JKX said that it remains on target to meet key production objective of 20,000 boepd during 2011.

Source: JKX Oil & Gas