Companies: JKX   

Ukraine-focused JKX Oil & Gas is bullish after lifting interim pre-tax profits 72 per cent to £71 million.

Fully-listed JKX increased turnover 20 per cent to £24 million in the six months to June. Average production in the first half year fell from 8,022 barrels a day of oil equivalent to 7,521, but output began to rise towards the end of the first half and the company is now producing at the rate of 12,000 barrels a day.

Chief executive Paul Davies says that most Ukrainian gas produced had to be sold at a locally-imposed $1.90 per thousand cubic feet, against a European market price of $5, but says costs are still only around 40 per cent of that. He argues market pressures will force the Kiev authorities to lift allowed prices before too long.

JKX also has projects in Bulgaria and in Italy (where it may increase its activities) and a stake in a major project involving BP and others in Georgia, where Davies has high hopes. The company is likely to exit soon from its remaining US activities.

At 217p, up 3.5p this morning, JKX shares have risen from the 53p at which Growth Company Investor first recommended them in December 2003 and the 155.5p at which we highlighted them last March. They value the company at £330 million.

JKX Oil & Gas	LSE	£207.37m	132.50p	-17.00p
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Other company articles:
Interims ahead at JKX			29/08/2008
Exploration Insights			31/03/2008
Expansion continues at JKX			19/03/2008
Revenues grow at JKX			25/09/2007
Ukraine progress by JKX			21/08/2007