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

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

MMs still collecting ! A plethora of sells and the s/p flies ! Then a 100k BUY trade comes through and mms drop the bid price by 2p ! ....Sometimes it seems all to easy- but of course, we all know that is pure nonsense !!, ,,,ln this game only pure hard graft gets you anywhere ,and even then, your gaurrantered absolutely nothing except sleepless nights ;-)) .......So i have learnt to to reslish moments such as these. /...Bonne chance tous de vous @+ J ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,...Your correct Andy; For a share which has risen from 56p at finals 21 months ago to 290 and has heaps of potential JKX is scantily covered on this BB ...

Hello again Andy....J....Dr square
Not much to add to your post's. It is a liitle puzzing for me some rather large buy's and very little movement in s/p anyway once again thankyou for your post's (i alway's look for them becase it's the only info i get) Am back to work tommorrow after the holiday's so see you and you correct J about it's cover on these board's
keith

Ukraine's former PM Tymoshenko denounces gas deal with Russia
AFX


KIEV (AFX) - A deal ending Ukraine's 'gas war' with Russia was denounced by influential ex-prime minister and 'orange revolution' leader Yulia Tymoshenko as well as supporters of the previous pro-Moscow leadership intent on pressing their case ahead of parliamentary polls.

'It is necessary to immediately annul all the accords that have been signed' under Wednesday's agreement, Tymoshenko was quoted by the Interfax-Ukraine news agency as saying.

The complex agreement stipulates that Kiev this year will pay 95 usd per 1,000 cubic metres, nearly double the price it paid last year.

The accord came after Russian group Gazprom cut supplies to Ukraine on Sunday, leading to a drop in supplies to some European countries and raising fears about European dependence on Russia.

Although it is a substantial hike, the 95-dollar price-tag is less than the 230 usd per 1,000 cubic metres that Gazprom has insisted on receiving because large quantities of much cheaper gas from ex-Soviet Central Asia will be supplied alongside the Russian gas.

Tymoshenko, who resigned as President Viktor Yushchenko's prime minister last year amid a bitter privatisation row, called for top energy officials to be investigated for betraying the national interest and abuse of power.

She took aim at a joint venture, RosUkrEnergo, that will handle all the gas imports to Ukraine under the new deal.

'For many years to come there will be an agreement with a big, completely corrupted structure, RosUkrEnergo, that will in fact become, after all these scandals, the only structure for delivering gas to Ukraine,' she said.

Tymoshenko's comments follow a denunciation from another wing of Ukrainian politics, the Ne Tak! coalition that draws its support from the pro-Moscow forces that controlled Ukraine before the 2004 popular uprising known as the 'orange revolution'.

The discontent looks likely to heighten tensions ahead of a March 26 parliamentary election at which the pro-Western course set by Yushchenko could be at stake.

Aldwickk,

Well an excellent week finished with a minor consolidation, and I would certainly have taken this closing Price on Monday morning!

Results are coming in March, and I anticipate there will be some upward movement before then, and then of course we have the possibility of a drill success before then!

2006 is looking good for JKX at the moment.

Andy

Just a quick thanks for pointing me in the right direction on this one.

Have not been in this share for long but am looking at 50%

understand Bulgaria are having a spat with Russia on gas now.

regards

Good write up in the Mail today.

Dr Square,

Thanks, I'm pleased you've made such a good profit so quickly.

Next we have the forthcoming results to look forward to, and there's always the chance of some news on the drilling front of course!

JKX now have two drill rigs, so I expect we are due some news.

Aldwickk,

Yes I agree, that was an exellent write up for JKX in The Mail today, a half page article on page 111 for anyone that wants to read it.

That will arouse some interest I'm sure, and we may well see some early buying on Monday IMO.

I also thought the broker target of 350p a bit light, certainly if anything comes in to add to current production.

I did feel he downplayed the Georgian propects though, and he totally failed to mention drilling in Turkey, Italy, or the USA licence!

Comment on JKX in this week's Investors Chronicle.



"JKX profits from Ukraine gas spat

The cold war between Russia and Ukraine could directly benefit JKX which produces gas in Ukraine. Most of the companys output is sold domestically at around $1.75 per thousand cubic feet. However the reported agreement between Ukraine and Russia calls for prices to rise from $2.65 to $6.0 over 5 years bringing them closer to European levels. Broker KBC Peel hunt reckons that this could boost the core value - not including the exploration prospects - of the shares to 340p. They currently trade at 290p.

IC view - Sometimes it is misleading to read across in this way. But JKX is a well run company with good prospects, and the shares are worth buying."

DrSquare,

This is the article from The Daily Mail last Saturday;


Source

Ukraine gas crisis boosts JKX

Brian O'Connor, Daily Mail
9 January 2006

AFTER this week's nailbiting confrontation with Russia, you need strong nerves to invest in the Ukraine. Its political masters are paying a high price for defying their powerful neighbour in 2004's 'Orange Revolution'.

Ukraine agreed, under duress, to lift the average price it pays for all gas from $60 to $95 - and to pay Russian gas giant Gazprom a hefty $230 per thousand cubic metres for its supplies.

This is sad news for poor people in Ukraine, who face harsh winters. With elections due shortly, many see it as a brutal power play by the Russians.

But for JKX Oil & Gas, the UK firm set up to invest in Ukrainian energy, it is a big improvement. JKX is already making money from its oil and gas stakes there, but has to sell its gas at prices much lower than those paid in neighbouring states such as Poland or Germany.

It has long seemed on the cards that the gap would close. Now it looks as if the adjustment could happen quickly.

JKX shares were first tipped here in 2003 at 36p, and again last June at 148p. They have bounded ahead, reaching 286p this week.

The company's broker Investec expects operating profits to double in 2005 to $50m, and almost double again in 2006 to $90m. That would lift earnings per share to 23p and put the shares at 12.5 times. But the profit estimates are moving upward, and the real upside comes from rising prices further ahead.

The company, which is named after engineer JP Kenny whose firm had contracts in the Ukraine and moved into energy more or less by accident, has a range of gas contracts with local businesses. Prices are usually fixed monthly.

These prices have been climbing steadily. In 2004, they rose 13pc to $1.57 per million cubic feet. In the first half of 2005 they were $1.75. Now they are around $2.25. The average price level of this week's agreement is $2.65. The price to Russia is $6.

These prices may be hard to bear in a poor country with aged industrial infrastructure. But they are not high in comparison with the prices British firms are paying.

The average price the Ukraine will pay is equivalent to 17p per British thermal unit - a price many UK firms would die for. The higher price the Russians will get equates to 41p - not out of line nowadays.

It seems clear that, as Europe scrambles for gas supplies, pockets of low prices will be gradually soaked up. Even this week's compromise depends on the Central Asian gas producers selling at one quarter of the Russian price. How long can this last?

Tony Alves at KBC Peel Hunt has crunched some numbers on the implications for JKX. If it gets the full $6 for its gas by 2010, he values its core assets at 340p a share.

That is higher than some other brokers' figures, but excludes any value for the exploration portfolio, which includes offshore Georgia and Bulgaria as well as further prospects in the Ukraine. On balance, Alves thinks the shares are worth between 300p and 350p. I agree.

Anyone who bought on our first tip has made eight-fold profits, and may be tempted to cash in. Given a timescale of several years, there are plenty of possible sources of natural gas for Europe. Optimists say there will be a glut.

But first pipelines and import terminals have to be built. Right now the suppliers hold all the cards. I think JKX has further to go.

Very nice

Looking forward to the rest of the year. Am I right that JKX can sell their oil outside of the Ukraine?

regards

Amities / l seem to remember an executive memo from the President and issued via the Ukranian Dept of Minerals and resources that stipulated JKX oil / gas was under temporary suspension from exportation. All production to be secured for any shortage in cheap domestic supply / demand . There was talk of repealing such such restrictive trading during the latter half of 2006. @+ J... Whatever happens JKX appear to be in an enviable position . But dont forget Peel Hunt are valuing JKX @ 240/245 if $6 per scuff . ln my opinion thats not going to happen as yet but there is no doubt unhedged JKX oil will fetch higher prices .

Thanks TFC for the information

Vote of no confidence see attached.

Interesting facts debate over the time scale of the Gas deal 6 months or 5 years?

Nice to see Standard & Poors giving Ukraine a bill of health.

I`m assuming that JKX are paid in local currency and exchange for accounting purposes?

Regards


http://investing.reuters.co.uk/news/newsArticleSearch.aspx?storyID=194163+11-Jan-2006+RTRS&srch=ukraine

Dr Square,

with regard to the export of oil from the UKraine, JKX cannot at the moment, I believe, as there was an export embargo issued by the Ukraine government.

However, they receive close to the international price, AND they save on transportation costs, so there is a minimal difference, according to the FD at the last AGM.

Dr Square,

The price is currently up 12p at 304p!

And still no interest on this bb!

hello Andy
I have been watching them rise today maybe some news coming. Topped up yesterday
Keith

Wow

Yes - nice rise.

Good man yerself keith !!

Wonder why it went ballistic today ?

Andy

looked at it first thing and it was bouncing up and down a penny. came back with a smile.

I thought 3 would be a bit of a nut to crack. We due drilling news???


regards