JKX Confirms Focus on Ukraine Shale

UK-based JKX renewed its interest for shale gas developments in Ukraine, suggesting an upbeat outlook for the unconventional industry in a country torn by the arm-wrestling between Russia and the West.

“We are refocusing our investment on Ukraine. We have made an important step forward in the development of our largest untapped gas resource with the successful multi-frac in the Rudenkovskoye field. We have also brought on-stream our Elizavetovskoye development which is performing above expectations,” JKX Chief Executive Dr Paul Davies commented in a note released on Thursday.

The company expects Ukraine to account for an increasing share of its production. It also said that JKX’s expectation for gas realisation in Ukraine will remain stable in 2014, while gas realisations in Russia is set to rise.

“This year has started well with two excellent well results on our Elizavetovskoye field. We are forecasting continued growth of production through 2014 with an increased contribution from Ukraine where gas realisations are expected to remain strong. JKX has operations in both Russia and Ukraine and our activities in both countries continue without disruption,” reads the communiqué.