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

StockMarketWire.com
JKX Oil & Gas has lost its main claim against Ukraine over excessive royalties and production taxes paid by the company's subsidiary, Poltava Petroleum Co.

JKX had lodged several claims under the agreement between the United Kingdom and Ukraine for the Promotion and Reciprocal Protection of Investments for approximately $168m for excessive royalties and production taxes paid by Poltava Petroleum Co plus damages.

The international arbitration tribunal has dismissed the main element of the company's claim but ruled that Ukraine violated its treaty obligations in respect of excessive levying of such taxes and awarded the company damages of approximately $11.8m, plus interest, and costs of $0.3m in relation to subsidiary claims.

In parallel to the claims made against Ukraine under the UK-Ukraine BIT, the company has persistently defended its position in the Ukrainian courts regarding the rental fee charges levied for 2010 and 2015 (totalling approximately $32m at current hryvnia-US dollar exchange rates).

JKX said that while this ruling posed additional challenges for the company in particular regarding the 2015 claims (totalling $22.3m at current exchange rates), the company would continue to defend its position in the Ukrainian courts in all outstanding cases.

JKX also said it intends to begin a dialogue with the Ukraine government in order to satisfy the terms of the award and reach a mutually beneficial outcome.

Chief executive Tom Reed said: "JKX has, over many years, been one of the largest foreign investors and major tax payers in the Ukrainian gas industry.

"We are disappointed with the decision on the overall award, but pleased that this result helps to draw a line under historical legal issues.

"As set out in our strategy a year ago, we now look forward to resolving all outstanding litigation and returning to our core business of drilling for oil and gas.

"We will call on the Ukrainian government to secure support in creating an environment in which JKX can execute its recently finalised field development plans, invest in gas production and assist Ukraine to achieve energy independence."

StockMarketWire.com
JKX Oil & Gas is 'particularly disappointed' by the withdrawal of support for the current board by 20% shareholder Proxima Capital Group.

It said that further to the announcement on 12 May in relation to the most recent request from Eclairs Group to propose ordinary resolutions to appoint Michael Bakunenko as a director of the company and to remove certain directors from office at the next annual general meeting, the board had met to discuss its recommendations in respect of the revised proposal by Eclairs.

JKX said that during the board's deliberations, it became clear that Proxima Capital Group, the company's 20% shareholder, and its two nominee directors, no longer supported the current composition of the board, and instead favoured a significant restructuring.

It said: Proxima have neither proposed any particular board composition, nor disclosed how they intend to vote on the Eclairs proposals or the draft AGM resolutions being prepared by the company.

"They have however notified the Board that they may choose to do so in the future.

"As a consequence, the remaining board directors expect that some, if not all, of the AGM resolutions which will be sent to shareholders in the coming days will not have the unanimous recommendation of the board.

"The executive and independent directors are particularly disappointed to be announcing the withdrawal of support by Proxima, the shareholder that led last year's overhaul of the board, at a time when the company is launching the groundbreaking field stimulation programme announced only yesterday, a central plank of the turnaround strategy previously supported by Proxima.

"The executive and independent directors will, over the coming days, carefully consider the AGM resolutions which best serve and protect the interests of the company, and the corresponding recommendations they will make to shareholders.

"In the meantime, shareholders should take no further action."