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

Sorry but don't agree, though i remain a long time fan of this company ....... shares have risen 30/35% in the last month and need time to consolidate ..... any market weakness in the near future is likely to see a further fall, perhaps disproportionately heavy

Just got in at 399p.

well one of us will be correct, unless they just stand still ... lol!

414p now.

so are you rushing off to take your profit before they react again? .... lol!

cynic,

Apparently an interesting comment on the front page of the FT today, I will try and buy one later, and update tomorrow!

Thanks Andy .... If I spot it first, I'll post here

Cynic,

Xena has already typed it out over the road, so saved us the trouble!


"Dmytro Firtash, the Ukrainian trader who has emerged as a key player in the European natural gas market, was unfamiliar to most western business people until this week. But a small group of British businessmen have known him well for years.

When he appeared last year at a Mansion House dinner at which the Queen presented an award to Ukrainian President Viktor Yushchenko, the 40-year-old Mr Firtash sat at a table hosted not by Ukrainians, but by JKX Oil and Gas, a British AIM-quoted company with interests in Ukraine.

Its Chairman is Lord Peter Fraser, a former Tory trade Minister, and the Chief Executive is Paul Davies, an oilman with extensive experience in the former Soviet Union. Mr Firtash is one of the companys biggest shareholders, controlling a 9.7% stake through a holding company called Benam.

Few people beyond JKXs immediate circle were aware of Mr Firtashs significance. This week he was identified as a key shareholder in RosUkrEnergo, a trading company bringing gas from central Asia to Europe.

Half of RosUkrEnergo belongs to Gazprom, the Russian gas giant. The other half is split between Mr Firtash with 45%, and Ivan Fursin, a Ukrainian banker and associate of Mr Firtash, with 5%.

Mr Firtash established his fortune by supplying food and goods to Turkmenistan in exchange for gas for Ukraine in the late 1990s.

Among his earliest contacts with British business people was Robert Shelter-Jones, whom Mr Firtash met through Mr Fursin. Mr Shelter-Jones lived in Kiev in the early 1990s and later in Moscow, working for a series of property companies.

Mr Shelter-Jones contacts included Viscount Asquith, a member of JKXs board who had worked as a diplomat at the British embassy in Kiev. The contacts between Mr Firtash and Mr Shelter-Jones culminated in 2003in a complex deal that brought together Mr Firtash and JKX.

Benam bought a stake in JKX, which acquired a small stake in Eural Trans Gas, at that time Mr Firtashs main gas trading company. JKX credited Benam with helping it secure Ukrainian permission to export gas.

Personal loyalties seem to have mattered to both men. Mr Shelter-Jones sat next to Mr Firtash in this weeks FT interview. Mr Firtash referred to the secrecy that until this week surrounded his background. He said I once asked Robert, Arent you afraid I could embarrass you? He said, No, I know you very well.

Mr Firtash described Mr Shelter-Jones as my partner and financial consultant. He put the (UK) team together. Mr Shelter-Jones said he would soon be saying more about their future plans.

Mr Firtashs British team includes two of Mr Shelter-Jones former partners in the Moscow real estate business David Brown and Howard Wilson. Mr Brown and Mr Wilson hold powers of attorney at Centragas Holding, the Austrian registered company that holds Mr Firtashs and Mr Fursins shares on RosUkrEnergo.

Mr Firtash also recruited Cedric Brown a former chairman of British Gas, who in 2004 took a post as chairman of Eural Trans Gas. Companies controlled by Mr Firtash bought a British company where Cedric Brown was chairman, Atlantic Caspian Resources. ACR was in debt and had been suspended from Aim in 2003. Cedric Brown now works as a consultant to Mr Firtashs group.

While some British business people might have concerns about Mr Firtashs secretiveness, his powerful contacts in the former soviet Unions gas business made him an attractive partner.

*An aide to MrYushenko said Ukraine might change the company that imports its gas after Mr Firtash and Mr Fursin this week emerged as the beneficial owners of half of RosUkrEnergo, Reuters reported yesterday."

Good news for JKX...bravo!

Well is it good news? ......
*An aide to MrYushenko said Ukraine might change the company that imports its gas after Mr Firtash and Mr Fursin this week emerged as the beneficial owners of half of RosUkrEnergo, Reuters reported yesterday." ...... That could equally mean that Mr Yushenko does not care greatly for all the power currently in the nads of Messrs Firtash and Fursin, and that wings may either be clipped, or that shareholdings may be "beneficially" re-apportioned.

Plesae tell me if you think my logic lacks any such thing!

cynic,

I am sure there will be posturing, but I for one have no idea how this will be resolved, but your "or that shareholdings may be "beneficially" re-apportioned" comment may turn out to be nearer the mark.

I do not think it wil effect JKX anyway, as they are producing and selling within the Ukraine, which needs all the oil and gas it can pump.

In a way you are right Andy, but that does necessarily mean that Mr Yushenko thinks he needs JKX ...... but then of course I am a cynic! ...... With all the uncertainty and, as you say, posturing, in the short term I would not be at all surprised to see JKX retracking back towards 350. This looks to be a covenient round number and chart support of some kind, or perhaps even as far back as 300, which is about where sp was about a month ago.

I shall certainly (well almost!) be looking to buy back into this share, but the level is as yet undetermined, as of course is the timing .... the most important element of all.

cynic,

Well as the majority of JKX shares are held by institutions, I would be very surprised indeed if your price predictions came true, as they don't react like private investors do, they take a longer view.

In addition, trackers would have just been adding due to the inclusion in the FTSE 350, so another bunch of safe hands.

I haven't read anything that would concern me enough to sell my JKX in the last few weeks, and the AGM is almost with us, a chance for the directors to explain how the business is doing.

it happens that i made a very handsome profit on my holding, and took the view that no one ever goes broke by taking one .... i remain a fan of this stock and will happily reinvest if/when the time feels right ..... it will be uncertainty (fear!) rather than actuality that will precipitate any short term weakness

For a midcap oil company JKX should have perhaps ten to 20 rigs in active operation on a various number of their prospects .l expected a far more productive past two years with more work in not only the Ukraine { black sea } but also the Russias ; and aquisition of more prospects in other regions { Azerberjan Turmenistan . . Profits in 03/04 only increased as a consequence of the massive hike in the oil price. JKX did not produce an extra ounce . 2004/5 was better due to receipts from one repaired well and a single half decent strike Suddenly they look expensive to me.. A singular project leaving them immersed in the Ukraine .Whenever will they expand activities ? ...l have held most of my holding from when it was 36p to 64p but have added @ 150 and 210 and 276p and always felt comfortable holding them . But i look at other junior expos and suddenly JKX although looking very strong fundementally are once you scratch between the surface a little thin and weak . l found myself selling half my holding to fund and increase holdings in AFR and EEL in which i see a lot more upside . But while i do agree with Cynics last mail i dont think JKX will fall out of the sky . Far from it . Or i wouldnt keep half Regards to all other JKX eees @ +J

lncidentally anyone who is interested in a solid proven business model within the oil industry whose management and prospects are second to none . Rather than me prattling on about it i advise you to cast an eye over AFR . A 10 bagger within a 2 years . l stake my reputation on at least a price tag of 350p ++ by this year end . @+ J

TFC,

I have seen their presentation at Oilbarrel, and they certainly impressed IMO.

With regards to JKX, I agree they have been somewhat slow in adding to their wells, but since December they have two rigs working on their prospects, so that's a 100% increase on last year!

I believe we are due some news soon, regarding the well that previously encountered a high gas pressure, and possibly one other, which hopefully will be positive.

It looks as though we mayhave a busy year with the other prospects in Turkey, Bulgaria, and maybe even the USA giving us news, and Italy production is due to start in 2007, permit permitting.

Once JKX hook up to the export pipe from the Ukraine, we should realise a decent increase in revenue on that portion of the gas that is exported.


Whilst I agree the current valuation looks a bit toppy, I remain a fan, drill news is due, and could come at any time, and that would make a difference, as would any export revenues from the Ukraine.

Evening gents

Doubt that they have the capacity?

Ukraine may use other suppiers?

Regards

Dr Square,

Interesting article, thanks.

Maybe a bit of posturing going on?

JKX's portfolio of oil wells are increasing...bravo!


JKX Oil & Gas tests 2 wells at Poltava
AFX

LONDON (AFX) - JKX Oil & Gas PLC said it has completed and tested 2 further wells in its ongoing drilling programme at Poltava, Ukraine, with both wells tied back to the company's production facility via new flowlines.

During testing, Well M154 flowed at a stabilised rate of 920 barrels of oil per day and 1 mln cubic feet of gas through a 33/64 inch choke, with a wellhead flowing pressure of 770 psi. Well M154 is a horizontal development well located on the southern flank of northern part of the Molchanovskoye Field.

Also in testing, Well I124 flowed at a stabilised rate of 1,530 bpd and 0.75 mln cu ft of gas through a 30/64 inch choke, with a wellhead flowing pressure of 1,075 psi. Well I124 is a vertical development well located on the southern flank of the Ignatovskoye Field.