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

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

hello
jkx on the move this morning up 2% not seen any news yet lots of buys yes Andy maybe with so many brokers rating the share's as a strong buy people are getting the message
Keith

Mes amities / Bonne matins mes amies ! ,,,and what with Shell stumping up an initial $100m to farm into a 50% interest in a number of NAK {a subsidiary of Ukraines state controlled energy company- Naftogaz } licenses/ jv's in the gas rich Dniepr-Donets basin with access to deep potential resavoirs, which partly lie beneath large scale shallower acreage already in production the spectre of " Big Oil " rears its face once again in this region . Both BP and Shell and a plethora of foreign players are rapidly realising that the Ukraine serves not only as the foodbasket of the urban Russias but is equally rich in energy reserves with an abundance of infrastructure geared to oil/ gas transit to both east and West . .. ln short; With constuctive investment it will prove to be one of the globes most productive gas fields/ producers .,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.Malcom Brinded, Shells executive director for exploration and production said " This is a significant move in our strategy to add more integrated gas to our portfolio " ..Need i say more ? . All this begs the question ; Will Shell whose agenda is well known in the city take out a player of the stature of JKX ............................................................................................................. .To add to the good Dr's input which raises a very moot point ; Cardinal Res { CDL } stated that since market inclusion on AIM in summer of 2005 their gas receipts from the Ukranians have risen a tad in excess of 34 % . Same story at JKX , l would have presumed . As for CDL: With acreage spread all over the eastern side of the Dniepr basin at Bilousivsko-Chornukhinska, North Yablunivska , Dubrivska , Ukrgazvydobovunannya and the Rudivsko Chernovozavodske ( a field alone assayed independantly to have in excess of 1.5 t scuffs of gas en situ).... l would advise anyone, especially those who saw the merits of JKX at the pre 40p level and acted accordingly in making a purchase , to add this stock to respective watchlists .This stock which witnessed a single trade on thursday ( 19/1 } of a mere 10,000 yet the Friday saw a volume of in excess of 20 million as a couple of institutions took principal positions . ln addition CDL directors { unlike those at JKX } have opened thier own cheque books and are busily buying thier own shares @the 22-28 level on the open market ..lf things are so rosy at CDL then i could imagine the story at JKX will be very similar . ......But one thing is undisputeable ; Due to a catalogue of reasons,socio- economic, geo-political ,and not least its tiff with the Russias i believe the the results JKX will produce in march will lead to its FTSE 250 inclusion; and even though this milestone was not achieved as a consequence of the sudden hike in the price of gas on the market, the matter will be surely rectified by its corresponding march m/c ante the actual results ...What with sweeter oils such as WTI and L.Red @$68.43c p/b and the HH gas price @ $9.28c per MMBTO and what with current variables such as trouble in Nigeria and lran the price will remain bullish for some time yet . ..........lf you found JKX attractive ; then CDL is a minnow worth casting an eye over . For from little acorns do great oaks grow; and it is about time a thread was initiated for CDL !. .. Bonne chance / a'bientot . @+ J

you can follow a not too busy thread for CDL on ADVN

so far it isnt taken over by the usual mouthy lot who just argue with each other
or
just praise each other like so many on ADVN

hello j
Thanks for the information. JKX look at them go up 5% now wow
keith