JKX and Serinus boost gas output, Regal decreases in August

JKX and Serinus boost gas output, Regal decreases in August



10 вересня 2013 года
Конкорд Капитал

Two out of three Ukraine-focused gas E&P companies boosted their output in August, according to the Ukrainian Energy Ministry’s preliminary data released on September 9. JKX Oil & Gas’s (JKX LN) average hydrocarbon output from its Ukrainian assets amounted to 4,946 boepd in August, 7% higher than its 1H13 avearge.



KUB-Gas, a 70% Ukrainian subsidiary of Serinus Energy (SEN PW), raised its output 6% (to 4,810 boepd) in August compared to its 1H13 average. Regal Petroleum’s (RPT LN) average hydrocarbon output was 1,396 boepd in August, 9% less than average in 1H13.



In 8M13, KUB-Gas increased its gas output 28% yoy, while Regal’s output fell 5% yoy and JKX plunged 31% yoy. Total production of natural gas in Ukraine increased 3.0% yoy to 13.39 bcm in 8M13.



Roman Dmytrenko: The Energy Ministry data suggests JKX has likely overcome its multiyear period of declining output from Ukrainian assets, and we now expect a positive update on the company’s recently fracked R-103 well by the end of October. The drop in Regal’s output is of little surprise, considering the disappointing flow rates from the company’s new MEX-105 and SV-53 wells.



Gas production in Ukraine should increase 7.4% yoy in 2013 to 22.05 bcm, based on the government’s plan. Yet with the available production data for 8M13, we see producers will underperform by about 0.7 bcm. That will require the government to import additional gas (on top of the 27.3 bcm planned for 2013), unless it decides to revise its gas accumulation plan downwards or the Ukrainian economy uses less gas this year.

Источник: Конкорд Капитал

Аналитик: Роман Дмитренко
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