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JKX Oil and Gas (JKX)     

Andy - 15 May 2005 23:55

k1.jpghomepage_txt.gifk2.jpg


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.

Ukr5_d001.jpgChart.aspx?Provider=EODIntra&Code=JKX&Si


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

Dr Square - 15 May 2006 13:44 - 342 of 656

Afternoon

Have to admit I had some more this morning first thing.

Round two is about to start with America as umpire

Regards

Dr Square - 17 May 2006 10:08 - 343 of 656

From Cardinals recent reserve report. The price of gas is interesting hope it gets there.

Time Period Forecast Average Forecast Average Forecast Average
Gas Price/Mcf Oil Price/Bbl Cond Price/Bbl

2006 $2.60 $53.36 $59.67
2007 $2.67 $54.20 $60.70
2008 to 2020 $3.40 $54.45 $60.98
2021 to 2030 $4.52 $70.19 $78.61


Another bit from the report is that Ukraine has increased the tax on oil by 59% from January.

Regards

Andy - 18 May 2006 11:26 - 344 of 656



JKX Oil & Gas PLC
18 May 2006




JKX Oil and Gas plc

AGM STATEMENT

Speaking at the Annual General Meeting today, JKX Oil & Gas plc's Chairman, the
Rt. Hon. Lord Fraser of Carmyllie Q.C., said:

'I am pleased to be able to report that your Company continued to grow
significantly in 2005, with rising production generating substantial increases
in both revenues and profits. We have embarked on this current year with the
objective of again lifting production, and utilising our strong balance sheet
and cash flow to broaden our asset portfolio and increase our reserve base.

'Ukraine remains the Company's main area of production and investment. The
drilling programme is moving at an accelerated pace on our Poltava licences with
the addition of a second drilling rig from the turn of the year. We have
recently reported the positive results of the drilling and completion of two
further development wells on the Ignatovskoye and Molchanovskoye Fields
respectively; these have lifted current production rates above 12,000 boepd. The
larger of our two rigs has completed the deep, high pressure gas Well R101 on
the Rudenkovskoye Field, and is now returning to Molchanovskoye to drill the
next oil targeted development well. I anticipate that we will be in a position
to release initial indicative results in the early part of next month from the
extended test programme planned for Well R101. Our smaller rig has just
successfully completed a re-entry and sidetrack on Well I101 on the Ignatovskoye
Field, and testing is scheduled for next month. This rig is now moving to drill
our first exploration well in the Zaplavskoye license which lies to the south of
our production licences at Poltava. We are also out for tender for a large rig
to drill the Devonian section at 5,000m plus in the northern part of
Rudenkovskoye Field.

'The Company continues to seek to increase its licence portfolio in Ukraine and
welcomes the recent introduction of open licence auctions. I am hopeful that
future licence offerings will include both exploration and development acreage.

'Throughout 2005, the Company actively pursued new opportunities in and around
its core area of activity, the results of which include the addition of two new
exploration licences in Ukraine and recent farm-ins to projects in Bulgaria and
Turkey; work programmes are underway on all projects. The Company is continuing
to evaluate other potential opportunities in the region, including onshore
projects in the Russian Federation. I remain confident that the management team
will add meaningful assets to our portfolio in the current reporting period.

'Increase in reserves remains the strategic objective for this year, with
Ukraine continuing as our prime area of investment, expansion and development.
Despite the current delay in formation of a new government, your Board is of the
view that market economy forces are well entrenched in Ukraine and further
privatisation of the oil and gas sector can reasonably be expected in the medium
term.


Your Board continues to remain committed to delivering shareholder value. We
have recommended a doubling of the dividend for 2005, and I can confirm that the
Board will be reviewing the absolute dividend level to be paid in the
forthcoming period.

'Finally, I extend my appreciation and thanks to all shareholders of the Company
for their continued interest and support.'


ENDS



Press Enquiries

Sofia Rehman Cardew Group 020 7930 0777


This information is provided by RNS
The company news service from the London Stock Exchange

Dr Square - 18 May 2006 20:25 - 345 of 656

Got myself in a muddle need some help.

JKX have three possible ways to increase revenue.

1: Higher domestic gas prices. (June Gasprom negotiations)
2: Increased production ( AGM statement & current RNS statements)
3: selling outside of Ukraine ( tie in to gas pipeline AGM statement)

Have I missed anything????

Currently in January ukraine did a deal with Gasprom to supply gas at $95 per 1k double what was currently being payed. Share price doubled???? in reports at the time it was clear the intention was for it to be a sliding scale agreement over 5 years?????? So am I wrong in thinking that in June we may see a further increase????? and responding share price increase.

Production has increased since 05 and it seems that they have some in hand is this currently reflected in share price?????

With the current problems within the Ukraine can we really see JKX being allowed to export and what would be the tax on such exports???

I am not takeing the Michael on this I truly have lost the plot anyones views on the 3 issues above would be truly welcome.

Regards

Andy - 18 May 2006 21:11 - 346 of 656

Dr Square,

Here is my take on your three questions.

I have read rumblings about Gazprom increasing the prices, but i have also read that Ukranian indusrty is really suffering, so maybe they couldn't take another increase so soon? I am discounting an increase in the local domestic price for 2006.

Given the current average production, and the fact that some of the increase in last years's production did not really show in the figures for year end, will result in a decent increase for 2006 IMO.

Add to that, hopefully, we will see some positive results for the 2006 drilling campaign, R101 for example.

With regards to exports, JKX seem determined to commence exportation of it's gas to realise the international higher prices, and I am sure they will eventually prevail, as they must have a signed agreement to do so.

Just my thoughts.

Dr Square - 20 May 2006 09:21 - 347 of 656

Andy

Thanks for that,Still positive.

Regards

Dr Square - 23 May 2006 21:50 - 348 of 656

What would this do to JKX revenue?

Domestic Gas price to increase by 50% ??

Regards

Andy - 24 May 2006 00:43 - 349 of 656

Dr Square,

That would do nicely!

Actually, the Ukranians seem to pay a set price for their gas, as it seems to be split between the residents of apartment blocks on a communal basis, so they have no need to conserve energy, as they pay a fixed price regardless.

Maybe this is the wakeup call they need to want to conserve their resources?

Dr Square - 24 May 2006 05:08 - 350 of 656

Morning Andy

It would be nice.

At some point in time they will have to start to bring the price into line with the rest of Europe? Considering the state of Nafgas finance, and the alledged gas stock that Gasprom have built up in the Ukraine to sell direct come Winter, It would make sense to raise the prices to allow Nafgas to survive??

Regards

Andy - 24 May 2006 09:53 - 351 of 656

Morning Dr Square,

Yes that's right, they need to take some steps towards bringing their gas prices more in line with Europe, and their system of collective use encourages excess use, so they may need to change their system to our type of individual dwelling metering IMO.

Interesting moves this morning, we started -16p, and now we are +5p, on lowish volume!

Andy - 24 May 2006 10:41 - 352 of 656

Dr Square,

I spoke too soon!

We're down a tad now, lol!

Dr Square - 24 May 2006 20:20 - 353 of 656

Andy

Hey day to day what the. It is long term that matters.

Just posted a begging letter to you. Andy

What is a problem? JKX are insulated within Ukraine for its product and income mostly, but yet are getting marked down. Go figure.

Bird flue is todays topic for the Ftse, but one of the biggest holiday spots for the Baltic horde is Egypt. Who have had bird flue for some time. While the Western Europeans avoided anything that flew as food, the Eastern Europeans got stuck in. Observations from a recent family Holiday.

Should I put my money were my mouth is and change my ISA holdings into JKX.

Any further pull back the phone will be lifted.

Regards

Andy - 25 May 2006 00:45 - 354 of 656

Dr Square,

Absolutely right, I don't worry about the day to day price movements as JKX has rewarded those that have been patient, and I think it will continue to do so.

I have mine in an ISA, as iIhave few stocks that I want to buy that qualify, hence my interest in Canadians stocks of late.

I wouldn't like to advise you re the ISA, if R101 comes in we could move north fast, but it is a gamble until the result is known, imo.

You may wish to consider moving some of your holdings into JKX, maybe you have a stock that is range bound, but we may have more turbulance, and another drop yet, who knows?

Andy - 25 May 2006 19:51 - 355 of 656

Dr Square,

A nice 6.7% rise today!

Dr Square - 25 May 2006 21:06 - 356 of 656

Not bloody nice for me LOL

didn`t move my ISA saw it open red and backed off.

oh well the rest of my JKX made money. The ISA will have to wait

seems to be pulling back from the 3.8 mark need something to nudge it on?

Did you notice that the Ukraine Parliament sat today for the first time.

GDP is targeted for 5%-7% for the comeing year.

Regards

Andy - 28 May 2006 09:38 - 357 of 656

Dr Square,

A nice end to the week!

I was in Ireland visiting the Galantas Gold Mine, so have been off the board, but the 36p rise on Friday was a welcome surprise!

Nice volume too, over 800,000 shares traded, a good number for JKX.

Dr Square - 28 May 2006 19:54 - 358 of 656

Yep Very nice finish Andy

Shorters nightmare.

Through the 4 barrier ! now it settled for a while just above this level? I hope it can kick on from here. My bet is it can as news is due on drilling ? and we have the political postering never mind the internal reform of the energy industry to consider.

I considered a possiblity for JKX to sell its oil / gas abroad at international prices and for the Ukrain goverment to place a heavy tax on it, the goverment then purchase gas from other sources at a lesser rate. could this work ? As it seems possible economically.

Hope you managed to have some proper Guinness Andy.

Regards

Andy - 29 May 2006 11:21 - 359 of 656

Dr Square,

With the drilling news seemingly imminent, I hope the price can remain above the 400p level, and the political posturing may go on for some time, so unless there is some bad news released somewhere, I hope we will establish a base at the current price.

With regards to taxation and exporting oil and gas, the scenario you speculate on could indeed become a possibility, as they could utilise the increase in taxation to subsidise the imported oil and gas.

I hope their Chancellor doesn't read Moneyam!

I did indeed manage a few samples of "proper Guinness", and they were excellent!

hlyeo98 - 30 May 2006 18:58 - 360 of 656

JKX not holding on...very volatile...drifting down

Andy - 31 May 2006 09:42 - 361 of 656

hlyeo98,

As indeed are many oil and gas stocks, something to do with the decreasing value of the US $ v other currencies I believe.

JKX have again increased production, and with drilling news awaited during June, on well R101 at least, I feel JKX are in a good position at present.
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