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

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

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.

Andy

Thanks for that,Still positive.

Regards

What would this do to JKX revenue?

Domestic Gas price to increase by 50% ??

Regards

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?

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

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!

Dr Square,

I spoke too soon!

We're down a tad now, lol!

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

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?

Dr Square,

A nice 6.7% rise today!

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

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.

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

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!

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

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.

JKX Oil & Gas PLC
01 June 2006



JKX Oil & Gas plc

Notification of Interim Results


JKX Oil & Gas plc will be announcing its Interim Results for the six months
ended 30 June 2006 on Tuesday, 26 September 2006.


For further information please contact:

Sofia Rehman, Cardew Group Tel: 020 7930 0777


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

Evening Andy / All

Have I got this right JKX got an average of $1.82 for a thousand cubic feet of gas last year.

Gasprom are currently selling at $95 per cubic meter.

That would make JKX got in effect $65 per cubic meter last year.

Is my conversion accurate? anyone

I ask because the domestic rate has been set at $83 from June.

Domestic rate

Regards

A lot of confusing information and no coalition ?


City sues Gas company


Ukraine paying up


Ukraine can handle world gas prices?

Regards