JKX Offloads Hungarian Unit

Ukraine-focused JKX Oil & Gas said on March 9 it had agreed terms for the sale of its Hungarian subsidiary Folyopart Energia (Riverside Energy) to Cyprus-registered Starhol Holding.

The deal, priced at $2.9mn, is set to be closed after clearance from Ukrainian antitrust regulators, expected in four to eight weeks. Proceeds will be used to fund JKX's development work in eastern Ukraine, and the sale will also help the company lower its costs.

JKX announced plans in early 2018 to withdraw from Hungary in early 2018, where it operates six production licences. The company's main focus is a cluster of gas fields in the Poltava region of eastern Ukraine, where it managed to ramp up production by 52% last year.