Jkx Oil & Gas Share Discussion Threads

[the ballcock] 16/3/2012 11:22

Seems to have levelled off at this for the moment.

[mpclag] 14/3/2012 07:47

until we get eoy results all targets are out the window

[wsm812] 12/3/2012 12:05

Looking good, trying to fathom the next resistance level. 200 is an obvious Psychological level.

Any other interpretations?

[wsm812] 08/3/2012 15:19

170 broken, need to stay above until Monday for a technical confirmation and then whoosh

[jaka] 07/3/2012 23:59

Thanks for that R&M. I tried a link earlier but my browser kept rejecting it.

Looks like an hedge, a loan against oil prices but to be honest I haven't a clue. The finance crew at JKX appear to know the workings of the deal and its advantages, baffles me. Maybe someone can explain the workings?

Looking forward to the end of the month and hopefully the results will include something positive this time that will support the share price unlike the last recent results that gave shorters a bonanza. Hopefully the change at the top may at long last be paying dividends. Literally!

[randolph and mortimer] 07/3/2012 21:34

Credit Suisse in $50m Urals Med swap with JKX Oil & Gas

Credit Suisse took full advantage of its strong structured finance platform and commodity derivatives expertise to help win an innovative deal to provide funding for primary gas production in the Ukraine.

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Executing the transaction from mandate to closing in just six weeks, the bank leveraged the oil production of JKX Oil & Gas to design an innovative pre-paid swap, in which the commodity price risk associated with more conventional loan facilities is taken out of the equation.

JKX, which produces crude oil, gas and liquefied petroleum gas out of its Novo-Nikolaevskoye complex in the Ukraine, and has operations in Hungary and Russia, found in Credit Suisse one of the few banks with the capacity to hedge its Ukrainian crude production, benchmarked to the Urals Med index published by Platts.

We were able to do this because of our appetite for emerging market plays, structuring experience and trading capabilities

Credit Suisse was introduced to the company in early March last year, and competed with three other banks to find a solution that would avoid recourse to the equity markets to raise the cash. "We conducted a competitive process, spanning several months, involving a number of large institutions with expertise in commodity finance," says Cynthia Dubin, finance director at JKX. "Credit Suisse was selected for proposing the most innovative, cost-effective and straightforward-to-implement solution," she adds.

The financing was structured as a pre-paid swap, in which the fixed leg is paid in total upfront and the floating leg is benchmarked against an artificially low strike price, guaranteeing the repayment of the 'loan'. Timing was a key element, with the swap executed in mid-June, following a spike in oil prices connected to 'Arab Spring' protests, giving JKX the best possible terms.

"The pre-payment is made by us against the consideration of striking the swap at a level some way below the forward curve on the oil price," says Laurent Quelin, a director in the global commodities business at Credit Suisse. "Although the deal was not huge in terms of the size, it was complex and interesting because of the structure and relatively unusual benchmark."

The 18-month swap was referenced to a volume of crude oil representing approximately 10% of JKX's then daily production on a barrel of oil-equivalent basis, with a three-month grace period and 15 monthly installments. The payment schedule runs from September 2011 to November 2012 inclusive, and is cash settled, with repayments indexed to monthly average Urals Med floating prices.

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[jaka] 06/3/2012 19:21

I thought yesterdays news was the best we've had in long time regarding prospects in the Ukraine. A development that will all help to reach the 20000 boepd required to support the share price and eventually return the yield this stock once provided. At this rate it won't belong before we'll be back in the 250 along with the institutional support they enjoy for the most. FINGERS CROSSED.


30461

[the ballcock] 06/3/2012 10:10

holding up real well today depsite the massacre elsewhere

[mpclag] 06/3/2012 07:30

just filter them-then we can have a sensible convo

[boobly] 05/3/2012 16:34

If I was .....
I`ve certainly stumbled across a pretty sordid cabal of ignorant human detritus on this thread .

[the ballcock] 05/3/2012 14:37

hehe LOL

ok, if there's a few folks gettin upset i'll tone it down

[wsm812] 05/3/2012 13:59

170p still proving resistive to a break through. Significant TA level.

[mutantpoodle] 05/3/2012 13:59

ditto

thats even it actually is two guys
not just one supporting himself!

[boobly] 05/3/2012 13:58

Ah ! The sound of human effluent trickling trough the rat infested sewers of Lagos I think .
Thank goodness for small mercies ; at least we can`t smell these people .

[bear of little brain] 05/3/2012 13:15

Guys, I'm with Boobly on this one... can we keep it a bit cleaner and just more pleasant for everyone else please?

[boobly] 05/3/2012 12:20

I love the language on here , is it a form of `Pigeon Russian` ,
or is it practiced in a specific Gypsy region in the Ukraine ?