JKX Sees Q2 Output Drop on Covid

Ukraine focused producer JKX saw a 10% drop in output in Q2, down to 9,894 barrels of oil equivalent/day, from 10,996 boe/d in Q1 2020. This was due to drilling and workover rigs on standby in Ukraine for the majority of the reporting period because of Covid-19 restrictions, it said July 9. First half output though was up 3% on H1 2019 at 10,445 boe/d.

In addition, two routine plant shutdowns in Russia and Ukraine contributed to the drop in average group production in Q2 2020.

However by the date of the update production was back up to nearly 11,000 boe/d after successfully adding perforations in one Ukrainian well, IG142. One new well is to start in Ukraine next quarter.

It has also had an international arbitration award recognised in Ukraine, meaning Kiev must pay $11.8mn plus interest and $0.3mn costs to JKX. JKX has filed for collection but it advised that "no possible future benefit that may result from this award will be reflected in the accounts until there is further clarity on the process for, and likely success of, enforcing collection."