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

JKX Oil & Gas Well "Probably Very Low Risk"

Friday, February 24, 2006 4:15:29 AM ET
Dow Jones Newswires

0758 GMT [Dow Jones] JKX Oil & Gas' (JKX.LN) latest well spud in Ukraine is a small feature oil well, "probably very low risk," says an analyst. Reckons if the well is successful, it could add some 1000 barrels of oil per day, lifting JKX's production by 8% to 10%. "It'll be very useful incremental profits if it comes in." But notes the it's a "relatively small oil accumulation," adding, "it's not going to be something that make or breaks the company's hearts."

JKX closed at 354p Thursday. (JZR)

The promotion and relegation from the FTSE 250 take place next week, on 7th March.

Looking at the companies at the bottom of the FTSE 250, and their market caps, and comparing to those such as JKX ast the top of the FTSE 350, it does look as though JKX will indeed achieve promotiom, barring any last minute disasters.

I just checked the market caps of the companies in a Dow Jones article, which I have pasted below, and they are as follows;


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TSE 250 Most Likely Risers, Fallers Cited

Thursday, March 02, 2006 7:45:32 AM ET
Dow Jones Newswires

1131 GMT [Dow Jones] Drax Group (DAB.LN), JKX Oil & Gas (JKX.LN) and Dexion Absolute (DAB.LN) are the most likely companies to be promoted to the FTSE 250 at the quarterly index review, say traders. Britvic (BVIC.LN) had also been cited as a potential promotion candidate until its sharp share price slide Wendnesday. Photo-Me International (PHTM.LN), Luminar (LMR.LN), Whatman (WHM.LN) and Skyepharm (SKP.LN) are the most likely to be demoted to the FTSE 350, they added. FTSE declined to comment but will makes its decision based on closing prices on March 7. (DWE)
------------------------------------

Possible FTSE 250 relegation candidates;
BVIC 568 million
PHTM 349 Million
LMR 364 million
WHM 362 million
SKP 332 million


Possible FTSE 250 promotion candidates;
DAB 568 million
JKX 529 million

All figures as per LSE website after close today.

From the Guardian.
======================

Status quo

The quarterly review of the FTSE 100 index is set to produce no changes for the first time in a decade. Index compiler FTSE will announce the results of the review today but based on last night's closing prices there would be no one joining or leaving the index.

Lower down the market there is expected to be more movement, with Drax and JKX Oil & Gas and Dexion joining the FTSE 250 and SkyePharma, Photo-Me and Whatman leaving.

It's offical, we're in!
----------------------


FTSE Group confirms no blue chip index changes for first time in 10 years
AFX


LONDON (AFX) - FTSE Group, the global index provider, last night confirmed that there will be no changes to the FTSE 100 index following the latest UK indices quarterly review.

This is the first time there have been no changes to the blue chip index at a review since March 1996.

In the mid cap FTSE 250 index, there will be three new entrants - recently listed power company Drax Group PLC, investment company Dexion PLC, and JKX Oil & Gas PLC, promoted to the FTSE 250 from the FTSE SmallCap.

All good Andy, thanks

Anyone know who is leading the polls inthe elections? and are they being independently monitored.

regards

Should be a very interesting 2 weeks.

Results, into the FTSE250 and elections.Feeling good about this.

Gives some Idea of elections

Are they relaxing the export criteria?

WTO

Regards

Dr Square,

Interesting 167,348 BUYS after the bell!

hello Andy
yes i was looking at that. One was a P trade don't know what that is. With big buys the s/p may now start to move up with results out soon

kkeith2000

Well according to the glossary, "P = Protected Portfolio Transaction."

And according to the LSE;

"Definition

"A term used by the London Stock Exchange to denote that a transaction was reported as a protected portfolio, or was as a result of a worked principle agreement for a portfolio transaction."


I have to admit I am none the wiser after reading that!

Andy, Keith,

I work in so-called "global custody" (i.e. a bank looking after pension funds' assets) and have a sneaking suspicion that a "portfolio transaction" is the name given by brokers to a transaction that takes place when the shareholder moves shares across the market, from one nominee account to another or one customer account to another, without payment taking place. This can be between custodian banks where the pension fund transfers its assets from one custodian to another or simply between two nominee accounts at one bank to correct a mistake, to hold the stock in a different system or to effect the splitting/consolidation of a fund. In the language of custody, the shares are moved but there is typically "no change of beneficial owner".

If I was at work right now I'd ask around for confirmation, but have been off ill for a long time so will have to leave it. Hope it helps anyway. (Anyone else out there who may be in the know is welcome to confirm or correct).

In other words it won't or shouldn't have an effect on the share price - hence the "protected" or "portfolio" status.

hello soul traders
thanks for the information

Soul traders,

Many thanks.

All,

JKX has output an excellent set of final results today, and doubled the dividend to shareholders!

It's a long read, but you can find the report HERE

hello Andy
to me these look a excellent set of results.The company has grown well.With the s/p coming off recent highs i can only think the market is waiting for election results in Ukraine

Big buyers out midday

Thanks Andy

They have put together another nice set. But the bits that I like are the forward looking bits. OIL still not being sold outside waiting for paperwork? Gas find that is still awaiting development 200 foot gas prices on an upward trend.

But I have to admit a bit confused by the pipeline issue towards the end. anyone shed any light.

Regards

Why is JKX not going up after announcing its spectacular results today?

hlyeo98,

It is a bit strange I admit, I don't think the market could have expected any better results than these to be honest.

The price was looking a little toppy for the existing production, so maybe they were already priced in?

Any new additional producion would be different of course!



Dr Square,

re the pipeline, I will try and find out, but I presumed they were trying to hook up to an export line.

It would be beneficial if they did as they would achieve international rates for that gas, as opposed to the Ukraine domestic rste that applies to all of the production at the moment.

if oil is not being exported, it doens't really matter, as they receive close to the international spot price, and they dont have to pay transportation costs, so little difference.

Record profits at JKX Oil & Gas
MoneyAM
JKX Oil & Gas announced record full year profits, boosted by the sustained rise in production, coupled with the strong international oil prices and the continued rise in domestic Ukrainian gas prices.

CEO, Dr Paul Davies, said in a statement: 'JKX will continue to build on its success in Ukraine and will continue to examine opportunities elsewhere.'

The company said it is currently evaluating a number of potential exploration and development projects.

'We are enthusiastic about our initial investments in Bulgaria and Turkey, but to date have not identified a suitable onshore prospect in Russia. We are increasing our efforts to identify suitable prospects around our core operational area and are well placed to move swiftly to secure them,' the statement added.

The company said the full development of the four production licences at Poltava remains its operational focus in the near term.

The completion and testing of its suspended deep Well R101 on the Rudenkovskoye Field is a priority for the second quarter of the year, as is the securing of a third rig with a 15,000psi BOP system.

The company said the first exploration well on the Zaplavskoye license in Ukraine is scheduled for the third quarter. Evaluation work will also progress on the Elizavetovskoye and Chernovayarske exploration licences.

Exploration drilling is scheduled on its Bulgarian and Turkish licences this year.

In the year 2005, sales shot up to $82.9m from $46.6m, with pretax profit coming in at $51.3m from $23.4m.

The company is also proposing to double the dividend payout for the year. It is recommending a final dividend of 0.6p, taking the total payout to 1.1p from 0.55p the year before.

Capex rose to $32.3m from $27.8m, with more than 85% invested in the development of its Ukrainian assets.

Andy,

I agree with your post 248 - JKX is now on a current P/E of 23.3, which seems just a little on the high side, so they'll need to progress with production and exploration to drive value.