JKX March Output Hits Three-Yr Record

Russia and Ukraine focused explorer JKX produced an average of 10,200 barrels of oil equivalent (boe)/day in March, it said April 17. That is the highest monthly average group production since June 2016, it said. Over the quarter, it saw average daily production of 9,907 boe/day, up by 11.6% on Q4 2018. 

March monthly production was “strongly supported by the IG103 side track” in Ukraine, that has averaged 1,598 boe/d in Q1 and exceeded expectations. IG103 has produced 171,000 boe and a new well WM3 has been drilled to a total depth of 3,570 metres and found a total of 21 metres of net pay.

“Both Ukraine and Russia continued to generate operational cash flow, although Ukrainian gas prices were 21.6% down compared to the previous quarter, allowing us to continue investing in the fields as planned," it said.

In Ukraine the new well WM3 has been drilled to a total depth of 3,570 metres and is now ready for perforating and testing.

In Russia the Well 5 workover has resumed following the repair of the damaged drill pipe and operations are ongoing to recover as much as possible.

There has been no progress in the Ukrainian courts, where JKX has contested claims issued by the tax authorities for additional rental fees. Similarly, its application for the recognition and enforcement of an international arbitration award remains  as described in the 2018 annual report.