Jkx Oil & Gas Share Discussion Threads

[wallywoo] 18/1/2016 08:44

why all this cryptic sh*t glavey just say it, whatever it is?

have not the time or energy to follow what on earth you are trying to communicate. Proxima are a bit dodgy? - Well they can join the list with the other 5 main shareholders

[wallywoo] 17/1/2016 15:18

LOL, well I invest to make money, is that not the point? And my point is that I will likely make money if Poxima take over or not. Both have their good and bad points.

[glavey] 17/1/2016 14:13

"therefore, it does not matter to the PI" > Passive investment policy? Why post?


Proxima Capital Group, 40 Pheonix Rd., NE38 0AD.
Who are Proxima acting for?

[wallywoo] 17/1/2016 13:41

As far as history is concerned, I personally made a small fortune the last time JKX went from 20 to 500+ and hope it happens again. I think the past mgt made a forgivable mistake in plunging into Russia but is could easily have come good (if the gas market opened up - which it will one day).

PD has made JKX work in the past and he could do it again IMO. The other lot are unproven.

[wallywoo] 17/1/2016 13:35

My point is Glavey, that with such shareholdings the PI is unlikely to make a difference which way he/she votes (am guessing less than 5% owned by PI), and that I think the future is looking better whether Proxima get their way or not, therefore, it does not matter to the PI (I see opps and threats for either group).

As far as shareholdings are concerned PD was really the main only Director Shareholder over the history of the company. The others have all come and gone with small holdings.

Whats your point? because it is hard to see?

[glavey] 17/1/2016 13:10

"What are you on about?" > What's that saying again? You can lead a horse to water, but you cannot make it think?

"I would say he has shared the pain." > Ha ha... (hint: read); ...and the rest?

[wallywoo] 17/1/2016 12:34

Glavey, if you look I was the one who pointed out that 6 organisations hold 81% of the shares? What are you on about?

If I was a director in a war torn country that was taxing the hell out of my company, I would not buy shares either. PD has not sold any either which means that he has seen the value of his shares go from around £18M to just under £1M (over the last 8 years and that does not include his options) I would say he has shared the pain.

[glavey] 17/1/2016 02:55

"For us I am not sure it matters,... (...why should it make a difference?)"

Do at least try and think about the holdings/holders and percentages.




FT reportage January 11, 2016 5:59 pm:



Despite the depressed share price, at no point have any of the directors put their hands in their pockets and bought shares in the market. Many have holdings well below their employer's policy levels.


Paul James Ostling, b. 1948:

[wallywoo] 15/1/2016 09:47

yes I agree pessimizer meant "institutions" in a very loose sense, it is a strange collection of organisations. Point still valid though that who wins / looses the mgt battle is in their hands not the small shareholders.

For us I am not sure it matters, I think with the tax changing, (the court case will be pursued whether it is with new or old mgt IMO - why should it make a difference?), and new drilling etc.

JKX should not be suffering too badly with the oil price drop either since the Russian and Ukraine gas price is fixed and is 90% of revenue.

[woodstock17] 14/1/2016 16:31

This is a real odd one. With about 6 shareholders owning around 80% it is not a normal situation - and none of the 6 are normal institutional shareholders.

It seems to that PCG have made a good case.

But will Kolomoisky and Zhukov buy it? Presumably they have no love for the management after being frozen out for a couple of years, not to say the legal bills they will have incurred. But do they like PCG? The Interfax message from StoneFold above suggests that they might well. Not long to wait now.

[pessimizer] 14/1/2016 16:23

Wallywoo "Not sure the institutions will agree". What institutions? There are no real institutions in the normal sense, e.g. fund managers, that I can see. I suppose it all comes down to what Kolomoisky's Eclairs Group decides. And then assuming that Glengary follows, as it seems to have done in the past. If they go for PCG's proposals it's game over.

[stonefold] 14/1/2016 15:34

It is in my opinion a touch disingenuous of PCG to point to a five year shareprice decline with the implication that it is mainly due to the management of JKX.
The shareprice was well into its fall when Proxima Capital Group Inc. were founded in 2013.
And it was lower still when PCG first became shareholders in JKX on 05-03-2015.

Looking at the 10 year chart it is clear in my opinion that the strong rise in the shareprice was due mainly to the stake building by Eclairs Group Limited and Glengary Overseas Limited. Combined with respectable exploration and production activity, plus firm long term price expectations for the oil and gas sector.

Once Eclairs and Glengary = (Mr Igor Kolomoisky + Mr Gennady Bogolyubov + Mr Alexander Zhukov + Mr Oleksandr Ratskevych)
stopped buying shares in JKX the long term down trend started.

Perhaps the uncertainty as to whether Mr Kolomoisky intended to do the same to JKX as happened to Ukrnafta contributes. This down trend was later assisted by the bursting of the “China growth Dragon” – slump in price of oil/gas – Russian hostilities – Inexperienced Ukrainian coalition government teetering around the plughole of economic collapse – uncertainty as to whether sufficient cash can be generated to deal with a possible early repayment demand of JKX’s loan notes each February.

I suspect PCG are hoping to profit from a refinancing plan to replace the loan notes when JKX are seen as weak and having little alternative.

Any company could do things better with different decisions/management.

For instance PCG should have bought shares in JKX when they were cheap. Instead they behaved in a clumsy and unprofessional way (imo) by releasing an RNS on 05-02-2015. It was not PCG’s responsibility to make comments about movements in JKX’s shareprice – that role belongs to the company concerned i.e. JKX. As a result PCG later bought at a price made higher by their own take/over rumour. If PCG were serious about taking over JKX then they would have talked to JKX - something they seemed to have failed to do.

In PCG’s short history they have advised on four deals regarding (Russian I think) telecoms companies. There is as yet nothing that they can show to demonstrate that they could manage an oil and gas company better than the current JKX management.
----------------

05-02-2015 RNS
“……….Possible offer for JKX Oil & Gas plc
Proxima Capital Group Inc ("PCG") notes the recent share price movement of JKX Oil & Gas plc and confirms that it is currently in the very early stages of considering a potential offer for JKX Oil & Gas plc.
There can be no certainty that a firm offer will be made nor as to the terms on which any offer might be made.
PCG intends to approach the Board of JKX Oil & Gas to discuss its proposals. ……”
----------------

05-02-2015 RNS
“….The Board of JKX has noted the recent announcement by PCG that it is in the very early stages of considering a potential offer for JKX. No approach has been made to the Board of JKX…….”
---------

19-02-2015 RNS
Proxima Capital Group Inc Holding in JKX as of 18-02-2015 = Nil
---------
19-02-2015 RNS
“…..Following further considerations, PCG hereby announces that it does not intend to make an offer for the Company……”
-----------

19-02-2015 RNS
“…….The Board of JKX has noted that Proxima, which announced on 5 February 2015 that it was in the early stages of considering a potential offer for JKX, has now announced that it does not intend to proceed.
The Board confirms that at no stage has any approach whatsoever been made to the Board of JKX by Proxima. ……….”
------------
06-03-2015 RNS
Proxima Capital Group Inc Holding in JKX as of 05-03-2015 = 21,531,889
------------

23-03-2015 RNS
Proxima Capital Group Inc Holding in JKX as of 23-03-2015 = 22,587,125
------------
27-05-2015 RNS
Proxima Capital Group Inc Holding in JKX as of 2705-2015 = 34,288,253

------------
11-01-2016
Looks like 58% maybe intending to vote for a change of management.

“………Eclairs Group supports the initiative on change management JKX
Eclairs Group Igor Kolomoisky and Gennady Bogolyubov, which is the largest shareholder of the oil and gas company JKX, supports the initiative of another shareholder - Russian Proxima Capital Group on change management JKX, said the agency "Interfax-Ukraine" director Michael Bakunenko Eclairs.
"We support the shift of the Board JKX, but I can not yet say anything regarding the proposed Proxima candidates: we have just received today, more detailed resume before January 28 (date meeting of shareholders JKX - IF) of their study, and will be ready ... the idea of change management we support because in recent years the company has not changed ", - he said.
M.Bakunenko added that Eclairs not surprise statement Proxima and its public debate with the current leadership of JKX.
"If you look at the position of Eclairs, voiced several years ago, there are the same things that bother Proxima. It was only a matter of time when someone else from among the shareholders will raise the same questions," - said the director of Eclairs.
According M.Bakunenko, management JKX operates, "to put it mildly, strange." In addition, Eclairs fear that the board JKX will try again to block their participation in the meeting, as it has happened before.
As reported, JKX Oil & Gas Plc with assets in Ukraine will hold a shareholders meeting on January 28 at the suggestion of one of its shareholders - Russia's Proxima Capital Group (PCG, founded by former vice-president of Alfa Bank, Vladimir Tatarchuk).
Proxima Capital Group proposes to appoint directors Paul Ostling (Paul Ostling, ex-manager of Ernst & Young and current board member of the "BRIC"), Tom Reed (Tom Reed) and Russell Hoare (Russell Hoare).
According to Proxima current management JKX operates inefficiently. In turn, the board considers the actions JKX Proxima attempt to gain control over JKX without fair payment for it.
The largest shareholders are Eclairs Group Igor Kolomoisky and Gennady Bogolyubov - 27.54% shares, Glengary Overseas Limited Alexander Zhukov - 11.45% of shares. In addition, the Russian Proxima Capital Group owns a 19.92% stake in JKX.

…………”

[wallywoo] 14/1/2016 15:22

Not sure the institutions will agree. They have sided with mgt on most of these attempts in the past. I think they are working hard behind the scene now and will come out with a killer RNS, extra drilling, great margins (now the tax is sorted) and Russia upgraded and producing well. 81% of JKX is owned by 6 institutions though, so it is in their hands. Over 2% owned by Paul Davies (CEO), so he had suffered too and has a great incentive to get the share price moving.

There is the court case too, which is certainly the hidden gem with this share - even if they get a fraction of amount they are gunning for (say $100M) it is still twice the current mkt cap.

[pessimizer] 14/1/2016 12:32

Well now that we have heard from both sides, the company and these proxima guys, what does anyone think? Which way do you think the votes will go at the EGM?

IMHO it does probably look like it is time for a change - the present team have been there for ages, and you can see the decline in share price started before the current oil price crash and the war in Eastern Ukraine. But are these the right people to replace them?

[wallywoo] 05/1/2016 14:45

Royalty rates now reduced, so should get an rns from JKX to this effect, and also should resume drilling operations: What with the general meeting / Proxima action going on and this, there are lots of reasons why this could come good soon

[flyingbull] 30/12/2015 16:44

The monthly oil stock competition for January 2016 as well as the 2016 annual oil competition are now open for entries. Deadline for entries for both competitions is midnight on Sunday, 3 January 2016. All the best in 2016!!!

[wallywoo] 16/12/2015 13:14

will hear soon whether tax rate is changing

hxxp://concorde.ua/en/research/daily/ukraine-slightly-amends-gas-farming-taxation-in-compromise-14859/

[llamarama] 14/12/2015 15:47

Its funny, how they are no longer arrogant about this. The Russian debacle was never a good idea, with hindsight or foresight.

Hope they go and pretty sure that they will.

[pessimizer] 11/12/2015 09:02

fair points woodstock17. It would be great if this action got the share price moving in the right direction.
And I agree that I cannot see the current board making another escape. Must be early doors for them. But some of them have had long enough.

[woodstock17] 11/12/2015 08:44

So, another activist play in the Russian/CIS oil & gas sector. This would seem to have a good chance of succeeding given the various shareholder blocks. JKX's board escaped from the Kolomoisky attacks, despite finally losing in the supreme court last week. However I can't see them surviving this one. Despite the inevitable questions about who Proxima are it seems that they have some proper candidates in Ostling and Reed. And surely they can't be as bad as the current lot?
But shareprice has done nothing so far today. We live in hope.

[pessimizer] 11/12/2015 07:51

That might finally shake things up. Thoughts?

[pessimizer] 11/12/2015 07:50

Just seen this





Proxima Requisitions General Meeting to restore value at JKX

London, 11th December 2015. Proxima Capital Group ("Proxima" or "PCG"), the independent investment firm, and the beneficial owner of 19.92% of the share capital of JKX Oil & Gas plc ("JKX" or "the company"), has delivered a requisition to JKX to call a general meeting ("GM") to give shareholders the opportunity to vote on a new direction for the company.

Details of our requisition, which we have not yet discussed with any other shareholders, are set out below. We will be writing a letter to shareholders of JKX in due course to set out further details of our turnaround proposal, and we look forward to communicating with them and other stakeholders about our strategy to save the company, and to gather additional views on how we can restore JKX to profit and growth.

Our requisition proposes that the Board is reduced in size from nine to seven members, with all four executive members of the Board replaced along with three of the non-executive directors, Lord Oxford, Mr Nigel Moore and Mr Dipesh Shah.

PCG has proposed the following candidates, all of whom are wholly independent of PCG, to be appointed to the board in the following capacities:

• Paul Ostling, to be chairman. Former global COO of Ernst & Young, extensive board experience on international blue-chips in the UK, US and Russia.

• Tom Reed, to be CEO. Over 20 years of business and energy experience in the region.

• Russell Hoare, to be CFO. Qualified UK Chartered Accountant. Over 15 years' experience of Russia, Ukraine and CIS.

PCG has also proposed two candidates to represent it on the board:

• Vladimir Tatarchuk, CEO PCG. Nearly 20 years' experience in finance sector in Russia and Ukraine, including senior positions at Alfa Bank and Deputy Chairman of VTB Bank

• Vladimir Rusinov, Managing Director PCG. 20 years' in investment banking in the global and CIS oil & gas sector with Goldman Sachs, Merrill Lynch, ABN AMRO and Renaissance Capital



Commenting on the announcement, Vladimir Tatarchuk, the CEO of PCG, said, "We are asking the shareholders of JKX to act now to save their company. The current JKX management have had their chance to demonstrate their ability to run the company properly and to realise its true value. Yet despite numerous promises of improvement, they have continually failed to do so. They have rebuffed our offers of greater engagement and the benefit of our expertise. The time has come for the company to be given fresh direction by a new independent and professional leadership team, which is ready to roll up its sleeves on the ground, to stop the destruction of value and to rebuild the company for the benefit of all shareholders. In the coming weeks, we look forward to communicating our key proposals for turning the company around, and opening up a constructive dialogue around the company's future with all stakeholders."

Paul Ostling, PCG's nomination for independent non-executive chairman, added, "JKX's share price has fallen by over 90% over the past five years and it has underperformed against virtually all its peers. The poor performance cannot solely be explained away by the fall in oil price or the geopolitical situation. In fact there has been a seemingly irreparable breakdown in the relationships between the company and all of its key stakeholder groups. It would appear that the time has come to change the management team and ensure it is better equipped to restore value and to meet the challenges ahead."

Tom Reed, PCG's nomination for CEO, said, "The company seems to have spent large amounts of money for scant return and appears to have missed every significant target it has set itself. It is clear that there now needs to be a thorough review of operations, a renewed focus on core assets and a prioritization of relationships with the relevant local authorities and key stakeholders by a new leadership team."

[wallywoo] 07/12/2015 08:22

JKX still have the potential to be a multi-bagger their problems are:

1) Ukraine is still war laiden and the gas productions tax rate still 55% despite quite a few attempts to bring it down to 29%. This means they make very little money currently. Until it happens though it is highly uncertain

2) Russia. Although production there is pretty impressive, they only earn less that a quarter of the gas value because they cannot export it. Once the market opens up (Gazprom the only company able to export presently) then overnight this becomes alot more profitable.

So there you have it, potential, likely or unlikely?? Place your bets.