Companies: JKX   

JKX Oil & Gas aims to expand in the Ukraine and Russia after upping interim pre-tax profits 78 per cent.

The fully-listed company increased profits from $55.7 million to $83.6 million (£46 million) in the six months to June, on revenues up 38 per cent to $117 million. Average daily production fell 10 per cent to 11.607 barrels of oil equivalent in the first half year, partly owing to a ‘natural’ seasonal decline and partly because of delivery limitations on gas from the company’s Poltava facility in the Ukraine — though JKX says it has now picked up to more than 12,000 barrels of oil equivalent a day.

However, an average 38 per cent increase in gas prices achieved by the company sent revenues up in proportion. JKX says its Poltava licences now hold proven and probable oil and gas reserves of more than 16 million barrels.

Despite current political tension, the company is developing the Koshekhabiskoye field in the southern Russian republic of Adygea, while ‘prudently expanding’ its exploration portfolio in Hungary and elsewhere in eastern and central Europe. JKX is also an ‘enthusiastic (4 per cent) partner' in a consortium exploring offshore Georgia.

Originally recommended by Growth Company Investor at 16.5p eight years ago and again at 53p in 2003, JKX shares hit 543p last May, but have since retreated. At 428.75p, up 22.5p this morning, the shares value the company at £671 million.

JKX Oil & Gas	LSE	£203.07m	129.75p	-2.75p
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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