JKX successfully works over IG-101 well in Ukraine

16 января 2018 года
Конкорд Капитал

JKX Oil & Gas (JKX)

JKX Oil & Gas (JKX LN) reported on Jan. 15 it completed a workover of its IG-101 well with sidetracking in December 2017 in what was the first drilling operation of its Ukrainian subsidiary since 2015. The well's current production is 2.1 MMscf/d of natural gas and 55 boepd of condensate, which meets management expectations, the company CEO said.

Alexander Paraschiy: The well's current output is about 400 boepd, or 13% of JKX's monthly hydrocarbon output in Ukraine. The workover results, therefore, are really encouraging. With a cut in the natural gas production tax to 12% for well spudded this year (vs. a 29% tax for older wells), JKX should intensify its drilling operations in 2018.

The key risk for the company, however, is that it might not have enough financial resources to start a massive drilling campaign. Also, the company has unresolved tax issues in Ukraine that pose additional risks. Such risks could be reduced if the company secures additional external financing. At this stage, we are not rating JKX stock.

Источник: Конкорд Капитал


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