JKX are a growth oil and gas company, principally based in the Ukraine, but also present in several other countries, and have recently presented some excellent results.




JKX corporate website : http://www.jkx.co.uk/index.cfm

Poltava Petroleum : http://www.ppc.net.ua/inf_en.html

Annual report 2005 : Click HERE

Andy

Seems to me the pressure is building for JKX to have a move one way or the other.the Gas issue with Russia is reaching the end game.

How do you view it.

regards

Russia - Ukraine on the brink tonight!


Last Updated: Saturday, 31 December 2005, 22:30 GMT
E-mail this to a friend Printable version

Ukraine gas cut 'will go ahead'

Gas supplies from Russia will end on Sunday, Gazprom says

Russian gas supplies to Ukraine will be cut at 0700 GMT on Sunday, state-owned firm Gazprom announced after last-ditch talks failed to settle a price dispute.

The row erupted after Ukraine rejected Russian plans for a 460% price rise.

Earlier on Saturday, Russia's President Vladimir Putin offered a three-month price freeze as long as Kiev agreed to pay the higher price after that.

But after fresh talks, Gazprom said the offer had been rejected by Kiev and supplies would end as planned.

Ukraine currently pays $50 per 1,000 cubic metres of gas, which Gazprom wants to increase to what it says is the market price of $230.

Russian supplies account for about 30% of total Ukrainian gas consumption.

The loss of those supplies will be a real problem in winter, says the BBC's Economics correspondent Andrew Walker.

Ukrainian gas industry officials say heating needs can be met from other supplies, but industrial customers might face reduced supplies, he says.

The crisis has also sparked fears that European Union supplies of Russian gas, which are transported through Ukrainian pipelines, could also be hit, although Russia has insisted this will not happen.

Putin offer

Mr Putin made his offer of a stay of execution at a meeting of his powerful Security Council attended by Gazprom head Alexei Miller.

"I instruct the government and Gazprom to ensure gas deliveries in the first quarter of 2006 with the conditions and rates of 2005, on the condition that before the end of today the Ukrainian partners sign the contract with Gazprom's offer for switching to market prices in the second quarter," he said in remarks broadcast by Russian TV.

Ukrainian Prime Minister Yuri Yekhanurov's spokesman said in response that Kiev did not object to market prices but "the exact figures must be negotiated".

Looks like the game just got dirty!


Gazprom says blocking Ukrainian imports of Turkmen gas


MOSCOW (AFX) - Gazprom is blocking supplies of Turkmen gas destined for
Ukraine as they transit across Russia, said the state-owned gas giant's deputy
chairman Alexander Medvedev.

"The only gas passing through our pipelines (at present) is Russian gas for
exportation, not Turkmen gas," he told a news conference.
Gazprom will use "all resources at its disposal" to safeguard the
transportation of its gas exports to Europe, he added.

The company yesterday cut off supplies to Ukraine by reducing the pressure
into its main gas pipeline, in response to an unresolved dispute over price
hikes.

The move has left Ukraine largely dependent on gas imports from
Turkmenistan, which pass through Russia. Ukraine renewed its supply contract
with Turkmenistan in late at December.

Around a fifth of Europe's gas imports come from Russia along the Gazprom
pipeline, which splits off after entering Ukraine into smaller branches to
supply the Ukrainian network and western Europe.

Several European countries this morning reported that the pressure of gas
passing through the pipeline had fallen.
newsdesk@afxnews.com
afp/jms

COPYRIGHT

Amities / A 10.71% gain on the day- 26.5 p ! !! Despite some quite large "sell" trades going through during the afternoon along with some silly ones the s/p appears to be holding up remarkably well . MMs seem very reluctant to drop the "offer" price below 270.{ and on a number of occassions have increased both " bid" and "offer " following a number of SELLS !! . A very similar trading pattern occured during what became known as "The Orange Revolution " but on a miniscule scale. . So whats going down here ? ? ....Accumulating for another party ?.Awaiting Ukranian news / developments which will impact on JKX s/p ? , Drilling news ( which we are due ) or as usual - plainly manipulating the s/p ? ..l strongly DOUBT the latter !! ...A lot of this is obviously related to the Russian / Ukranian gas scenario but i suspect there is another factor in play or otherwise all the largish "buys " would have been concentrated upon immediate inception of trading. . ....lronically the mileage of pipeline capable of carrying very heavy volume { 100,000bpoe pd }is greater in the Ukraine than any other state in the Balkans. The country is a labyrinth of pipelines. A spaghetti junction . lt has the capabaility to buy/sell its gas elsewhere if need be; and with USA foreign policy to build new bases in Rumania and Bulgaria and Georgia to protect Azeri , Armenian , Kazak and all oil produced in Caspian and Black sea countries it is little wonder the Ukraine is taking quite a bold step.lt is wrong for the media to suggest that the Ukraine are dependant on Russian pipes . Their is a document called "The Carter Doctrine " which sets down the rules in terms of an energy Chrisis such as this .Basically there are no rules except to protect the oil AT ALL COST ... . ,,,Politics aside ..... JKX look REALLY strong and very much demand again after being erroneously held back @ the 245 -50 level . ... Let the trend be your friend ,,,so they say . On the back of the unhedged oil produced by JKX alone i believe they will boast a 300p price tag very soon . lf our latest well proves to be a 3000 to 5000 bpoe we are in clover . News is due on a number of fronts ! Nice bit of biz with Ascent Res Bonne chance / bien amicalment et amusez-vous bien . a'bientot ,,,@+ J

Rumours abound that following Tony Blairs recent meeting with JKX top brass along with the chairman of Naftogaz {NAK Naftogaz} ,and RD/ Shell were in advanced talks to aggresively engage themselves in exploration of over 30,000 sq.kms in the gas rich Dniepr Donets basin . Shells senior executive director for exloration and production , and active representative at the meeting ,Malcom Brindid, stated "potentially significant volumes of natural gas" were very strongly much in evidence based on data he had seen . Capital permitting , a j/v for JKX , with such illustrious names in the oil world as NAK and Shell would propel them into a new era eg -FTSE 350 constituients . After all . Lets face it .Does anyone seriously imagine Shell and NAK would interest themselves in acreage lest it was devoid of enormous potential which considering the price of gas amounts to very healthy returns , Or does anyone imagine that energy prices will fall ? . Thats a misnomer for a start. ..A mere few million quid return with a short well life would hardly make a difference to thier respective balance sheets . Both only cast a net over projects regarding returns of tens of millions with long well life .. . ...However this all pans out JKX are once again in a more than enviable position than ever before in thier short history . Or will Shell buy them ?? l hope not . . lt is no secret Shell want a heavy presence in this area but the roller coaster ride for JKX is only juste begining . Word among some quaters in the city is that JKX have already located a very optimistic lead but are keeping quite tacit until this business with Russia sorts itself out ; and in order to get the optimum price for the gas . Qui sait ? . . . .....Nice bit of Biz done with Ascent Resources with the latter farming into the non core Fiume Arrone project in ltaly with JKX having the leverage to negotiate from strength and ended up with quite a fiscally rewarding deal. Terms are very attractive . Also a second rig - a kremco 900- has been contracted from Jaslo of Poland to continue work at Poltava . Wells spudded in DEC / drilling news should be due very soon along with the annuals which i believe will surprise a great number of people. ......lf one of our newly spudded wells yields between 3000 and 5000 bpoe p/d we are truly in clover ..Of the oil juniors only Cairns has better fundementals . The likes of both BUR and DNZ and the vast army of oil juniors are nowhere near as attractive ! ......a'bientot ,,,Bonne chance ...@+ ..J

TFC,

Good to see at least you noticed the 10% rise for JKX today!

Imagine if one of the 'promoted' shares had leapt 10%, how many posts there would have been?

Well it was nice to break out of the recent trading range with such aggression! I have been working all day so had no idea of the rise until 20:00 tonight, so quite a nice finish to a busy day!

I spoke to JKX this afternoon, and asked about the price they receive for their gas, and if there is a fixed or capped price.

The reply was that JKX supply the Ukranian market (not the government) at the prevailing iprice, and 'IF' the price of Russian gas were to increase, so would JKX's price for their gas.

I feel the annual results will surprise too, and am intending to top up before they are announced.

JKX now have two rigs onsite, and as you rightly say, if one were to produce a decent well now, we would truly be "in clover", and i'd probably be in the pub!

http://today.reuters.co.uk/news/newsArticle.aspx?type=topNews&storyID=2006-01-04T075749Z_01_SCH148325_RTRUKOC_0_UK-RUSSIA-UKRAINE.xml

MOSCOW (Reuters) - Russia and Ukraine struck a five-year gas supply deal on Wednesday after a bruising pricing dispute in which Moscow curtailed deliveries, hitting supplies to European consumers.
Alexei Miller, chief executive of Russian gas monopoly Gazprom, told a news conference the deal was effective from January 1 and would be based on a price of $230 per 1,000 cubic metres.
"We have reached a final agreement. It is successful for Gazprom and we are satisfied," Miller told reporters after talks with Oleksiy Ivchenko, head of Ukrainian state energy company Naftogaz.
"This agreement will ensure stable supplies to Europe."
But Ivchenko said Ukraine would be buying gas at the Russian border at $95 per 1,000 cubic metres.
"We have reached an initially acceptable agreement which gives us the possibility to meet the gas needs of Ukraine and the transit of Russian gas to Europe," Ivchenko said at the news conference.
A Gazprom source said the $230 price would apply only to exports of Russian gas to Ukraine, up from $50 now. Under a complex deal, Ukraine would be able to buy gas from Turkmenistan and Kazakhstan, piped via Russia, at a cheaper price of $95 per 1,000 cubic metres.

Dr Square,

Thanks, and good news indeed!

JKX up 5% already today, bsed on the anticipated near doubling of earnings on local gas sales no doubt!

To TFC, ANDY and DR SQUARE
I liked all your post's Thanks i also like JKX

kkeith2000,

Thanks, I hope you're a holder.

As I understand the announcement, JKX's revenue from gas sales in Ukraine should increase form $50 to $95 per 1000 cubic metres, so virtually a doubling of revenue on their gas sales, which account for around 50% of total revenue I believe.

I will email JKX for clarification later.

andy
yes i do hold these i have held these for years and this is great news and again thankyou for messages on this board
keith

Kkeith2000,

Very pleased you are a holder, and like me, bought at much lower prices.

My initial purchase was at 37p, and I have added as the price has increased.

kkeith2006,

Well here is some comment and confirmation from the media!




04/01/2006 10:03 DJ MARKET TALK: JKX Oil & Gas Buoyed By Ukraine Agreement

1003 GMT [Dow Jones] JKX Oil & Gas (JKX.L) should benefit from Ukraine and Gazprom's (GSPBEX.RU) gas purchase agreement, says KBC Peel Hunt. "If this is confirmed and is fully reflected by JKX's pricing, it could have a dramatic impact on the company," it says. "It may be premature to upgrade short-term forecasts immediately, but assuming a gas sales price of $2.60 in '06 stepping up to $6.00 by 2010, the earnings would steadily rise from 29p in 2006 to 36p in 2010." Maintains buy recommendation. Shares trade +4% at 286p. (DWE)

thanks andy
all this news in a few days its great i can see alot of shares traded today

thanks keith

Andy/Anyone

Will this contract also rise? With the domestic market price. Or is this going to add to the top-line in 2007/08.


http://www.jkx.co.uk/uploads/news/Initiation%20of%20Gas%20Export%2023.12.03%20final.doc


JKX Oil & Gas plc (JKX) announces that its wholly owned subsidiary, Poltava Petroleum Company (PPC), has successfully achieved its first export of gas from Ukraine.

PPC has signed a three-year gas sales contract with Eural Trans Gas Kft for the supply of a minimum of 720 million cubic metres (25.6 billion cubic feet) over the contract period. Gas deliveries commenced to Velke Kapuszany, Slovakia on 1st November 2003 at the minimum rate of 20 million cubic metres per month (approximately 60 per cent of PPCs current gas production). Commercial terms are confidential; however, net realisations for exported gas are expected to be about 30 per cent above those achieved currently for domestic sales in 2003. Confirmation has now been received from the relevant authorities that export of the November nominated gas volume was successfully completed.

JKX announced on 25th June 2003 that it had entered into an Agreement in Principle with Benam Holdings Ltd. The gas export contract realises an intent of this agreement. A further announcement will be made in due course.

Dr. Paul Davies, JKX CEO, stated Initiation of gas export is an important milestone. The positive input of the Ukrainian state oil and gas company, Naftogas of Ukraine, in this achievement underlines the commitment of the Ukrainian government to attracting western investment in the accelerated development of its indigenous gas resources.


But great couple of days

regards

Dr Square,

Well to be honest, I would expect any exports to be at the international going rate, which is why I believe the results will surprise to the upside.

RNS - director sale - 50% of his holding.

I wonder if the market heard an RNS rumour?

It may retrace a bit now IMO.

X Oil & Gas PLC
04 January 2006


SCHEDULE 11

NOTIFICATION OF INTERESTS OF DIRECTORS AND CONNECTED
PERSONS


1) NAME OF COMPANY

JKX OIL & GAS PLC

2) NAME OF DIRECTOR

JOHN R. MAPPLEBECK

3) Please state whether notification indicates that it is in respect of
holding of the shareholder named in 2 above or in respect of a
non-beneficial interest or in the case of an individual holder
if it is a holding of that person's spouse or children under the
age of 18 or in respect of an non-beneficial interest

DIRECTOR

4) Name of the registered holder(s) and, if more than one holder, the
number of shares held by each of them. (If notified)

JOHN R. MAPPLEBECK

5) Please state whether notification relates to a person(s) connected
with the Director named in 2 above and identify the connected person(s)

N/A

6) Please state the nature of the transaction. For PEP transactions
please indicate whether general/single co PEP and if discretionary/non
discretionary

SALE OF SHARES

7) Number of shares/amount of
stock acquired

N/A

8) Percentage of issued Class

N/A

9) Number of shares/amount
of stock disposed

100,000

10) Percentage of issued Class

0.066%

11) Class of security

N/A

12) Price per share

N/A

13) Date of transaction

03/01/06

14) Date company informed

03/01/06

15) Total holding following this notification

100,000

16) Total percentage holding of issued class following this notification

0.066%

IF A DIRECTOR HAS BEEN GRANTED OPTIONS BY THE COMPANY PLEASE
COMPLETE THE FOLLOWING BOXES

17) Date of grant

N/A

18) Period during which or date on which exercisable

N/A

19) Total amount paid (if any) for grant of the option

N/A

20) Description of shares or debentures involved: class, number.

N/A

21) Exercise price (if fixed at time of grant) or indication that price
is to be fixed at time of exercise

N/A

22) Total number of shares or debentures over which options held
following this notification

N/A

23) Any additional information

N/A

24) Name of contact and telephone number for queries

KATHY SHEEHAN
0207 323 4464

25) Name and signature of authorised company official responsible for
making this notification B J BURROWS

Date of Notification 04/01/2006

This information is provided by RNS
The company news service from the London Stock Exchange

Amities../ Up 5% . ( 16p ) .. Heady stuff ................. Director selling amounted to 100,000 @ 245p ..{ worst selling price of the day - 3 /1 /06 }So missed out on the past two days 45p price hike . .Considering the FD sold 80,000 or so @ a median price of about 208p in 4 tranches not so long ago, and another director dumped a heap @ 150p, l i can only assume they are quite dim at timing their trading , and in the latter case , had little idea of the impaction of the Russian/ Ukranian gas hike ( both very unlikely sceanarios ) and morelike a case of both having hundreds of thousands of handsome options @ 30p or something reaching maturity . . So raising cash to buy . Funny business as company s/ps are adversely affected by collective board selling . Even funnier still was seen in the fact that todays selling actually stimulated s/p very positively and buys merely consolidated the price. MMs seem a little unsure of pricing JKX at the moment .....Geopolitics has caught them on the back foot. ....,,,Bonne chance . a'bientot /demain @+ J

TFC,

Yes I noticed some of their director sales come just before price rises, quite odd really!

Up slightly today, I have a feeling 300p will prove to be a resistance point, without further positive news of course.

Amities Andy . Without exact clarification reg. Ukranian / Russian trading arrangements in the public domain yet, do you get the feeling that mms are running a little uneasy / unsure /scared of JKX at the moment.? And furthermore that there is an impending RNS ? Out of hours trading had the " offer " price @ 301p last night thearby locking out buyers. ...... .. Upon scrutiny i notice neither the Chairman nor the CEO ever seem to sell. lf The Ukraine pays Russia a 400% premium to current gas prices then what price JKX produced oil . ? ... lts an almost impossible task but i feel Peel Hunt have been a tad conservative in thier "sums " in my opinion. Especially when i look at s/ps of other mining juniors like PMO , BUR , DNZ,MLR ,EDG,VPC and whose fundementals are not as attractive as those of JKX @+ J > Looking forward to results in march