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 /lt was not news that drove JKX to this heady high of 316. MMs walked that all the way. Ratio of buys to sells out stripped 2~1 yet the s/p enjoyed a hike of 24p. Methinks someone is collecting. *********************************************************************************My anonomous friend who buys in tranches of 2500 and 5000 is back again i see. As always his timing is imaculate . lronic though that almost every fund manager and investment bankers to whom i speak are ALL SHORT on oil yet its energy thats driving this market; and the sector where most money is to be made ********************************************************************Appears Mr B at the FED reserve is quite happy to print the money to support a $60/70 barrel . High prices are here to stay ...ln a business environment where DNZ is capitalized at 597 m with an s/p of 941p and a p/r ratio of over 40 and equal reserves to JKX then the latter { with far superior fundies to every junior except Cairns upon which is on parity }) is worth based on my fag packet calcs 500 to 520p....With a full 6 months contribution from well NO.m151 yielding an extra 4000 bpoe worth [@ $25p/b } the sum of $18.2 mn is added to the coffers of JKX .Additional capital of almost $3.2 will come from simple things like the old Soviet well that self combusted onsite of m151 @ 500 bpoe; and being hiked up . .With the number of strategic acquisitions in a number of known producing countries ,the significance of all the farm ins and farmouts with Big oil , and with so many other irons in the fire dont be tricked, cajoled or told its potential is fully factored at current levels ,or that its oversold . lts not .. ..This is merely the end of the first chapter. .,,2005 was really a year of repair ,acquisition and consolidation . 2006/7 will prove the ones of really aggresive growth . lt hasnt really started ! a/b @+ J

You must be a very rich man by now , Jamie.

But never greedy Roly . Never . .. l bet you arnt doing so bad yourself old timer ...lol ..{ joke } ...To be quite honest i find it quite astonishing have done so well considering you only acquired a PC no more than a few years ago. congrats ! Takes some doing. @+ J

Thanks but you did give me a lot of help. I did say that AFD was a better short term bet then FDI, 63p to 74p yesterday , i was not to greedy bought @ 62, sold @ 69.5

Well at last, somebody has arrived to discuss JKX!



Dr Square,

Yes we probably are due some drilling news, and I did wonder whether this rise was caused by a rumour of something to be announced.

The only thing that causes me to doubt that is the recent director sale, but they have timed their sales badly before!

Volume was reasonable, although quite a few PI sized trades in the afternoon.

I wonder whether there will be any weekend press reports?

TFC / amities,

Well we have carried on from the late rise last Friday afternoon this morning, but no RNS to give a clue as to why the price has risen so much!

Currently up around 15p today so far, on medium volume, but no clue as to why.

TFC / Amities,

Another 7% rise, and not a post on the thread!

Now my best ever stock gain in percentage terms ever!

Morning Andy

I have to say. I should be enjoying the sterling rise in JKX. But the speed of the rise has taken me back a bit. We are up on, or exceeding forecasts from brokers.

I need to relax and see what comes forward as the reason.

Regards

I've been in and out of this stock for two years as it tends to fall back a bit. However, I'm inclined to see what happens now. Possibly news is due.

Dr Square,

I agree, the rise has been sudden, athough it tapered off today, but still up 2.5p!

I am waiting for the reason for the rise too, but it may simply be a rerating due to the increased revenues as a result of the domestic gas price increasin 50% or more in the Ukraine.


hutchins,

We'll see, we are in fact due some news IMO, either from the Ukranian projects, or Bulgaria, Italy, Georgia, or even the US.

JKX has a lot of projects ongoing, and any of them could report at any time.

JKX has now reached the recent broker target zone, and is probably fairly valued for now, at least until further news is announced, IMO.

Andy

Thanks for that, nice to see everyone thinking the same. Very strong recovery yesterday. Our trader was buying all day?

I have to say I`m quite glad it seems to be a re-rating due to the gas price increase IMHO. One, because there seems to be more to come in price increases, and Two because that means there is plenty of upside still left in the share with the E & P to come.

May look at taking some profit from OCN/LLOY and buy some for the ISA. See what the rest of the week brings.

Regards

Evening all

Just read this weeks I.C. Full page spread on JKX very good read all the facts plus one I hadn`t thought of. Currently JKX would easily enter the FTSE250. a re-rating is due March the 8th for entry on the 20th. Funds that follow this index will be obliged to buy at some point.

Regards

Dr Square,

Yes that's an interesting point.

I expect the price of JKX to run up from mid February, due to the results being due mid March, so just at the point of some speculative buying due to what I anticipate will be be sparkling results, we MAY have funds buying in due to FTSE 250 inclusion!

I think the IC article is spot on, and may bring some buyers in next week when the implications have sunk in.

A brief synopsis from the Investors Chronicle article yesterday, from another BB.


The article is on page 60, and is the full page.


The article is by Simon Thompson the companies editor of IC and is headed "... a potentially lucrative investment opportunity in the oil and gas sector"

He reviews the recent Russia/Ukraine gas deal - prices up from $1.31 to $2.65 and to rise to $6.38 by 2010. He then says that JKX at 330p is second in the FTSE Small Cap index, and is almost 100M ahead of Helphire which at the 325th largest company on the FTSE is the threshold JKX must clear to get into the FTSE 250. Thus when the new positions are decided on 8th March JKX at its current price is a dead cert to get into the FTSE 250 on 20th March. Institutional and tracker buying will push the share price upwards.

He then goes onto review the investment case saying that at this years gas prices the companys NAV is 241p. At 2010 prices it is 331p, and with exploration potential added that rises to 470p - and even then oil is only factored in at $40!

He also says JKX should have eps of 29p in 2006, cash of $62M at the end of 2005 worth 29p per share and a 2006 p/e of 12.

Conclusion - "I rate the shares a strong buy now."

Avoid. Pile of poo....right Andy.

One line deramp - learning from Andy.

I don't think so, Sue Helen...JKX is one to buy

Don't do that to Andy just because of his comment on IQE...you are getting revenge rather than using your brains.

hyleo98,

I agree, the oil price is increasing again, the local gas price in Ukraine where JKX supply the domestic market has just nearly doubled, and we are in the run up to what should be superb results, and now we are told that FTSE 250 inclusion is a distinct possibility!


Sue,

JKX is at the opposite end of the spectrum to the sort of shares you trade, highly liquid, and FTSE 250 entry coming.

A good time to buy and hold JKX IMHO.

This article has been reported in the Business Online today, not sure how much is fact, but it looks as though the Russian - Ukraine gas dispute is not yet over, and, IMO, may have a negative impact on the price tomorrow!

The sticking point seems to be the length of time, (6 months), that the new price is guaranteed for. I can see the Ukraine viewpoint here, Russia has a guaranteed transit price for 5 years, so hopefully they can come to a quick agreement.

I guess we need to wait and see how this develops.

Click HERE for article

Morning all

cheers Andy

while not strictly related worth a read cardinal article

http://www.oilbarrel.com/home.html

regards