Share Name Share Symbol Market Type Share ISIN Share Description
Jkx Oil & Gas LSE:JKX London Ordinary Share GB0004697420 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 31.50p 30.00p 33.00p 31.80p 30.90p 31.50p 7,727 11:00:08
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 56.6 -11.9 -7.6 - 54.22

JKX Oil & Gas Share Discussion Threads

Showing 11726 to 11747 of 11750 messages
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DateSubjectAuthorDiscuss
19/5/2018
18:47
Economic truthGaza does not go too far: how much Ukraine can produce in 2020In the gas sector, stagnation prevails, but there is hope for the better. The state has adopted a number of legislative changes that will break the negative trend.THURSDAY, MAY 17, 2018, 17:15ALEXANDER MARTYNENKOHead of the Financial Sector Analysis Division of the non-banking corporations ICUFrom the first four months of 2018, natural gas production in Ukraine declined by 1% year-on-year to 6.77 billion cubic meters. According to Ukrtransgaz.The negative influence of regulation of the industry is given.The jumps in fees for the use of subsoil, the bureaucracy and the difficulties of the licensing system frightened investment in capital-intensive production.It is becoming increasingly difficult to contain the natural decline of extraction in Ukrainian deposits, most of which have a long lifetime.In recent months, state regulation of the oil and gas industry has undergone dramatic positive changes, which could revive the business in 2018.According to the Association of Ukrainian Gas Producers, the volume of drilling may increase by 35%. In general, the association expects an increase in gas production by 7% to almost 22 billion cubic meters in 2018. The forecast is very optimistic, but it is realistic.Our expectations are more cautious: gas production in 2018 may increase by 4-6% to 21.3-21.7 billion cubic meters. If deregulation becomes a steady trend, growth volumes can significantly accelerate and reach 25-26 billion cubic meters in 2020 year. Change the rules of the gameOver the last four to five months, important legislative changes have been made to the industry. First of all, in December 2017, rent rates for gas extraction were reduced from 29% to 12% for wells up to 5,000 m deep and from 14% to 6% for wells with a depth of more than 5,000 m. The new rates were fixed until 2023 .Importance is also decentralization of rent. From 2018, 5% of the gas companies paid by the companies will be leased to local budgets. This will motivate the local authorities to more reluctantly treat gas companies with permits - including land allocation.Also during the first quarter of 2018, the Cabinet of Ministers and the Verkhovna Rada adopted a series of acts that significantly simplified the rules for the development of oil and gas fields, facilitated access to sites and reduced the number of permits.All these changes have increased the attractiveness of the oil and gas industry for investment. This will not only help increase volumes of mining operations, but will also contribute to the arrival of large industry players in Ukraine with new technologies and best practices.However, investors, before starting to invest a lot of money in the sector, want to see the effectiveness of these changes. For this state, it is necessary to continue deregulation, to establish a transparent system of auctions during the issuance of licenses, to modernize the laws and the Code of the Subsoil in accordance with European norms.Problems of state-owned companiesPublic companies continue to play a decisive role in gas extraction.Changes in the regulation of domestic gas prices allowed Naftogaz to increase its financing of extraction. However, due to the poor efficiency of public administration, complex relationships with regulators and local councils, state-owned companies are increasing production with great difficulty.The share of the Naftogaz production subsidiary of Ukrgazvydobuvannya, UHV, exceeds 73% of the total volume of gas extraction in Ukraine. In 2018, UHV plans to increase the volume of gas production by 600 million cubic meters or by 3% to 15.9 billion cubic meters.The company is guided by the ambitious "Program 20/20", according to which extraction should grow by 4.7 billion cubic meters to 20 billion cubic meters in 2020. However, the success of this goal is more and more questionable: the company does not have time to carry out a drilling plan.Observers note the too slow involvement of external contractors, in particular, foreign service companies with modern drilling equipment.At the beginning of 2018, UHV announced a 3% reduction in the production plan, accusing the Poltava Regional Council of not wanting to issue special permits to use subsoil.Nevertheless, due to the reform of gas prices and the improvement of the financial state of Naftogaz, UHV has far more opportunities for investing in production. In 2018, it is planned to spend about $ 1 billion compared with $ 200-250 million in 2015-2016.In the second largest gas producer, Ukrnafta, due to a lack of exploration and drilling investments, production volumes continue to decline, despite rising oil prices in 2017. At that time, the drop in production, by 14.8%, almost coincided with a natural decline of 15%, indicating insufficient drilling volumes.Conciliation barriers faced by Ukrnafta became more painful for it than for UHF. Ukrnafta suffered significant losses due to the blocking of the process of granting special permits on six productive fields.The company believes it is possible to increase investment in production from 0.6 billion UAH to 3.1 billion UAH, provided the high oil prices in 2018.However, a chronic lack of investment in mining can complicate even the stabilization of its volumes. In 2018, the average daily volume of gas extraction by the company is decreasing, the April decline is 6% since the beginning of 2018.The contribution of private companiesWhile the public sector is steadily increasing production, the role of the private sector is increasing. In 2017 the share of the private segment in the total gas production was only 20%, but the 2015-2017 years, production increased by 6% compared to 2% production growth in the public sector.Private players can provide most of the extra cubic meters in 2018. If the key private companies will be able to realize their ambitious plans, their share in total production could increase to 25-30% in 2020, and production - increase by 45-70% for annual 6,3-7 billion cubic meters.The largest private player "DTEK Naftogaz" plans to increase gas production from the current 1.65 billion cubic meters to 3 billion cubic meters per year by 2020. In 2017, the company drilled one well, commenced drilling the second, reconstructed Machuhsku installation of gas, intensified repair wells.The company plans to commission three to four wells annually, each of which can give 50-100 million cubic meters of gas in the first year of operation.The second-largest privately held company, Burisma Holdings, drilled 16 wells in 2017. However, in 2017, the production dropped by 11% to 0.9 billion cubic meters, although the company planned to increase production to 1.5 billion cubic meters. In 2018, the company intends to drill 16 wells, investing $ 150 million in production.The third largest producer, PJSC "Naftobrurinye", in 2017 increased its production by one and a half times to 390 million cubic meters. The company simultaneously drilled three wells. In 2018, she plans to increase production by 50%.Other private players - Smart Energy, Geo Alliance, JKX Oil & Gas - also have a chance to significantly increase gas production in 2018.Consequently, there are all prerequisites for Ukrainian companies to break the current negative trend. Of course there are high risks that manufacturers will not have enough time to significantly increase production in 2018. However, it is likely that we will see a rapid growth of the industry in the next two to three years.
jaka
18/5/2018
20:03
Do not forget the court cases, when considering potential debt. Cash now estimate $3.7 m = ( 7.4m cash at 31-12-2017 minus 6.9m bond repay Feb 2018 plus 3.2m net profit Jan-May) The company is making enough profit to just about cover general running costs and Bond repayments. Bond repayment 19th Feb 2019 $6.9m Bond repayment 19th Feb 2020 $6.9m But to expand production with new drilling it may need to borrow money. Hence why they opened a Credit line (12 months Ukraine) up to $5.3m available. So far so good, if could be debt free in two years. That is if you ignore the two court cases. Http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/JKX/13587245.html RNS 29-03-2018 See the Resolving outstanding tax issues section. It is possible that JKX win both of them. It is possible that the Ukrainian Government forgets for a moment how short of cash it is and benevolently withdraws the cases. Or like the company you can consider how damaging the risk of losing the cases might be. "..... The Company will continue to defend its position in local courts. Given the materiality of these tax liabilities we have considered the risk to the Group's ability to continue as a going concern further in Note 2 to the financial information. Additional detail on tax litigation cases is provided in Note 27 to the financial information. .........." The plus side of the court cases eventually being resolved is that the Ukrainians will release the arbitration money. Credit owing to JKX for arbitration tribunal in 2017 of approximately $12.1 m Unfortunately the cost of losing the cases is more than the credit. The tax authorities have lodged another appeal with the Supreme Court for underpayment of royalty from 2010 of approximately $11.3 million. The other case is still being contested in court for underpayment of royalty from 2015 of approximately $25.8 million. So JKX may end up owing the Ukrainian Tax dept. approx. $25.1 m The Ukrainian Government would be in a strong position to demand prompt payment, or to take control of the assets of the company. The Ukrainian Government already have a charge over the assets of JKX taken during early stages of the court cases. The Ukrainian Government can suspend or confiscate JKX's production licences for outstanding taxes. Http://enkorr.com.ua/a/news/Minprirodi_predlozhilo_zakon_ob_annulirovanii_neftegazovih_litsenziy_za_nalogoviy_dolg/231628 14-03-2018 ".....The Ministry of Ecology and Natural Resources has developed and promulgated a draft law providing for the suspension and cancellation of special permits for the use of oil and gas subsoil to companies that have a tax debt to pay rent. ...." It is not uncommon for production licences to be suspended. Next elections are in March 2019, that may encourage an attempt to get the cases over quickly so that the Government can make use of the funds rather than letting the spoils go to whoever wins the election. What are the chances of getting a fair trial? See the section on Juridical corruption Https://en.wikipedia.org/wiki/Corruption_in_Ukraine DYOR
stonefold
17/5/2018
22:48
Have invested here and feel very confident. Just need to let it move in towards 50p.
gregpeck7
17/5/2018
19:16
If there's anyone out there it's looking good.
mam fach
16/5/2018
14:03
Pity this is below the radar. Won't take much buying to move this North.
mam fach
11/5/2018
18:52
More late large buys coming in... stake building continues.
gregpeck7
10/5/2018
11:36
Never seen spread so low. .40p. Must mean rise in price imminent?
mam fach
04/5/2018
16:17
Nice recovery here today. Hopefully getting ready for next leg up.
gregpeck7
03/5/2018
20:15
Looks like I lost my investment in this today ?
kikkeridirect
03/5/2018
19:30
New to this thread Seems volatile this stock
kikkeridirect
03/5/2018
13:34
A bit of consolidation before moving on again. No real selling. People know what this is worth...
gregpeck7
03/5/2018
10:16
And chesty they are producing almost 10,000 boepd.. and valued at 40 to 50m not sure where it sits at the moment. Oil is now close to 75 us and they get a premium for their sales. The valuation is ridiculous so it should be re rating.
gregpeck7
03/5/2018
10:14
This was a 300-400p share so maybe this rise isn't so unexplained after all.
glavey
03/5/2018
08:15
Mms hiding all the buys on nex lol
gregpeck7
02/5/2018
18:03
Huge delayed buys showing as I thought someone is loading up here
gregpeck7
02/5/2018
15:07
Re the RNS yesterday... I asked a question of investor relations, I was advised that the RNS was purely put out for compliance purposes. Nothing else, no other reasons and the content and context is the same as in the annual report. So happy they seem to be making sure they are squeaky clean from a compliance side.. There was no other reason for the RNS other than that, the same information is in the annual report.
gregpeck7
02/5/2018
11:08
More price monitoring ... I think someone is building a stake here behind the scenes...
gregpeck7
02/5/2018
10:05
11 minutes ago | By Malcolm Stacey | Fancy an Oil Play in the Ukraine? It Might Be More Enticing than you Might Think Hello, Share Baggers. It’s a long time, if ever, since I brought up one of the most annoying stocks in my portfolio. That’s JKX Oil & Gas (JKX). And at long last, I see a glimmer of hope. I advised my wife to buy this company for her ISA yonks ago. ShareProphets
gregpeck7
02/5/2018
09:50
HIgher now than it was yesterday.. No idea why they dropped it, think the book is short and they need shares... Funny tree shake....
gregpeck7
02/5/2018
08:14
Bargain shares this morning, why have they dropped it?!
gregpeck7
01/5/2018
23:04
Found it... covers their internal controls... looks like a clarification of the report adding that nothing 'dodgy' was found...System of internal controlsThe current Board, together with the Audit Committee, has carried out a risk-based review of the effectiveness of the Company's internal control and risk management systems and has introduced a number of interim measures to strengthen them. This work is ongoing.Specifically, a breakdown in controls occurred in the Company's Ukrainian subsidiary during 2017. Several legal advisers were engaged without a proper transparent tender process. These advisers were paid legal fees of approximately $1 million, for which there is a lack of documentation supporting the natureand extent of work performed. As a result, the Audit Committee appointed KPMG to conduct a forensic examination of the process for appointment of legal advisers in Ukraine, the manner in which these specific payments were made and to investigate the nature of such payments and services provided. As at the date of this release, KPMG's investigation has recently been concluded and management has already implemented certain of the recommendations provided in their report.
gregpeck7
01/5/2018
20:51
Re reading it seems to me like it's some sort of forensic procedural investigation by kpmg into payments for legal advice.. as stated all seems fine but procedures need tightening.. wonder if anyone else has thoughts?!
gregpeck7
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