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

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.

morning

The Independent says at 329p, JKX Oil & Gas trades on a rating of just 12 times forecasts earnings for this year. This is too low a rating for a quality player like JKX. Buy.

Guten Morgen!

This was in the Financial Times:

JKX Oil & Gas said yesterday that it had benefited from the row between Russia's Gazprom and Ukraine over gas supplies as it can now sell the gas it produces in Ukraine at a higher price.

The company, which recently joined the FTSE 250 index, unveiled strong annual results, including a 120 per cent jump in pre-tax profit in 2005.

Paul Davies, chief executive, said the group had brought new wells on stream in Ukraine during the second half of last year, boosting cash flow. The group produces all its oil and gas from Ukraine, where it has been operating for more than a decade, and last year produced a total of 3.4m barrels of oil equivalent (boe), up from 2.9bn boe in 2004.

Oil and gas prices in Ukraine rose during 2005 and JKX said it had sold its oil at an average price of $46.43 a barrel, up from $31.99 a barrel in 2004.

Gas is sold in Ukraine at a discount to European markets.

The group sold its gas for $1.82 per thousand cubic feet (Mcf), up from $1.59 per Mcf in 2004.

But Mr Davies said prices had already risen by a further 50 per cent in 2006 following Ukraine's agreement with Gazprom to pay more for gas imports.

He said Gazprom had "set a new benchmark for the domestic gas market. There is undoubtedly continued upward pressure on prices".

Revenues at JKX rose from $46.6m (26.7m) in 2004 to $82.9m while pre-tax profit rose from $23.4m to $51.3m.

Mr Davies said the group's priority in 2006 would be securing more production licences in Ukraine, as well as projects in Georgia, Bulgaria, Turkey and Russia.

JKX shares fell 3p to 329p yesterday.

FT Comment

*JKX Oil & Gas shares have had a good run over the last eight months. From 150p in July, the stock has risen above 300p, peaking at 373p in January. Although the company is doing well, the recent price rise has been mainly linked to an external factor - the rise in Ukrainian gas prices. With a forward p/e ratio of about 11 times, JKX trades in line with the UK oil and gas sector but analysts warn that the upside from rising gas prices has been priced in and the shares look fully valued.

In shares magazine today, it projected JKX with a target of 477p in 2 years.

Kkeith, Soul trader, hlyeo98,

Thanks for those updates, I think JKX is about fair value at this price, as we may have drill news soon.

I saw a presentation by Cardinal Resources today, and have to say they look a good prospect too, quite undervalued in comparison to JKX, but they of course don't have the exploration prospects, and they have a costly financing to try and sort out!

but did you pick up a few Addy??
CDLs that is