Jkx Oil & Gas Share Discussion Threads

[morjarias] 11/9/2013 09:38

imho, this unloved stock is an amazing bargain, notwithstanding the court case... could more than double in 6-12 months!!

[salpara111] 02/9/2013 17:01

Bit of a fudge in terms of the court ruling.
Effectively they cannot undertake buybacks etc which is what they really wanted, but the flip side is that they can set aside their votes if they don't get satisfactory answers as to exactly who is controlling the beneficial interest in their shares.(at least that is how I read it!)
Bottom line is that the share price will be driven by their ability to increase production.
I bought in at 63 so up a bit but really looking for a return to the 100p mark in the next 6 months......assuming they can get new production on line.

[professor x] 31/8/2013 10:44

Court case verdict out. Not the best outcome, but to be honest as long as they keep releasing decent news like they have been doing over the coming months it's pretty irrelevant imho.

[mutantpoodle] 30/8/2013 16:18

JKX is NOT on AIM

[jaka] 30/8/2013 14:11

Investors in JKX Oil & Gas (LON:JKX) are now eagerly awaiting flow testing on the R-103 well in Ukraine after the company confirmed the successful completion of a 10-stage fracking programme.

The plugs in the intervals are now being drilled out and the company expects the 'flow-back' phase will be complete in 3-to-4 weeks, with flow tests running for a further 4-to-5 weeks after that."We are very pleased to have successfully completed this 10 stage frac operation in Ukraine," said chief executive Dr Paul Davies."Conditions have been difficult but overall the execution has been better than anticipated."Seven of the frac stages have achieved or exceeded design predictions, two were below expectations and only one was unsuccessful.
"The next few weeks of clean-up and flow stabilisation will be critical and we are encouraged that the well is already flowing gas to surface together with frac fluids."

City broker Oriel Securities reckons JKX's current share price underplays its potential and that the outcome of the R-103 well could be a catalyst.
By Oriel's estimation a success would add around 65p to the group's valuation, which currently stands at 124p per share.

That valuation itself is already way off what the market thinks the share is worth.

On AIM, JKX shares edged just 1% higher to trade at 67.25p.
The gap between the market's valuation and the broker's will narrow, Oriel says, as JKX ramps up production and demonstrates that its operational problems are behind them.

[p@] 28/8/2013 07:52

"We are very pleased to have successfully completed this 10 stage frac operation in Ukraine. Conditions have been difficult but overall the execution has been better than anticipated. Seven of the frac stages have achieved or exceeded design predictions, two were below expectations and only one was unsuccessful. The next few weeks of clean-up and flow stabilisation will be critical and we are encouraged that the well is already flowing gas to surface together with frac fluids."

[jaka] 12/8/2013 12:19

JKX looks beyond shareholder dispute

Ukraine and Russia-based oil & gas producer JKX Oil & Gas (JKX) is up 2.4% to 64p after returning to the black in the first six months of the year. The statement, which shows a swing from from a loss of $5.1 million for the same period in 2012 to a $7.5 million profit, also confirms its core projects are on track.

The last few months have been dominated by a bust up with largest shareholder Eclairs which some observers felt amounted to an attempt by regional oilgarchs to seize control of the company (we looked at the dispute back in May).In this context Shares spoke to the JKX management team to get a handle on how the firm plans to move past this debacle.

Chief executive officer Paul Davies refuses to be drawn on the dispute with Eclairs, a vehicle for Ukrainian billionaire Igor Kolomoisky, which made a failed attempt to oust him from the board at last month's AGM (5 Jun) and continues to fight a High Court battle over the running of the company.
Focusing instead on operational matters, he says: 'We've got a good two-year programme so this is effectively the first half of four halves. We have made a solid start, we have stabilised Russian gas production and identified an economic way of stretching our plant capacity.'We also got our two rigs back in March to pursue development and work-over programmes in Ukraine and have commenced our multi-stage fracking operation on the Rudenkovskoye field in the country with results likely towards the end of the third quarter.'

Missed production targets on mature fields and delays to the full-scale development of its Koshekhablskoye field in southern Russia have seen the stock crash from a high of 543p in 2008. Confronted with the poor performance of the shares, Davies adds: 'Shareholders want to see growth in the company and want to see us meeting targets.
'In the last two years we have had difficulties meeting targets mainly due to problems in getting the Russian project off the ground and a resulting squeeze on our liquidity. We have managed to get over that and I'd like to think we are back on the standard JKX road of setting out the things we aim to do and then doing them.'

According to Davie,s funding is underpinned by January's placing of a $40 million convertible bond – with operating cash flow of $42.3 million for the first half outpacing capital expenditure of $33.3 million.
House broker Oriel Securities, which reiterates its 'buy' rating on the stock in response to the results, says: 'JKX is currently trading at a 50% discount to our risked NAV (net asset value) of 125p a share, which we expect to narrow as the company ramps up production and demonstrates that any operational issues are behind them. '

hxxp://www.sharesmagazine.co.uk/news/jkx-looks-beyond-shareholder-dispute#.UgjDxOZwbbW

[jaka] 01/8/2013 15:08

JKX Oil & Gas (LON:JKX)'s stock had its "overweight" rating reaffirmed by equities researchers at HSBC in a research report issuedonThursday,StockRatingsNetwork.com reports. They currently have a GBX 140 ($2.15) target price on the stock. HSBC's price objective points to a potential upside of 120.47% from the stock's previous close.Shares of JKX Oil & Gas (LON:JKX) opened at 63.3625 on Thursday. JKX Oil & Gas has a 52 week low of GBX 48.00 and a 52 week high of GBX 98.00. The stock's 50-day moving average is currently GBX 80.11. The company's market cap is £108.8 million.JKX Oil & Gas plc (LON:JKX) is a United Kingdom-based company.

[xorex] 30/7/2013 17:03

There has been a court session but it looks as if the court will be reconvening at a later date. My conclusion is that it not cut and dried or simple and straightforward. To arrive at a decision they must require more evidence or information. All sides seem to be keeping their shutters firmly closed!

Rolls Building High Court

COURT 12
Before MR JUSTICE MANN
Thursday, 25 July 2013
At half past 10
TRIAL LIST
Part Heard
HC13D02145 Eclairs Group Ltd v KKX Oil & Gas Plc & ors

[salpara111] 30/7/2013 11:06

The court case was due to START on 22nd July, I have no idea how long it might take but I imagine it will take a week or two to get a result.
The resolutions that are stalled don't have a material impact on the business, they are more about whether the two large shareholders can stop their holdings from being diluted etc.
I am still at a loss to understand why, if they want the company they don't just offer £1 a share and take it private as that would still be a pretty good deal for a business that generated $10M profit in the first 6 months of the year.

[hashertu] 30/7/2013 10:57

Mpclag. The court case was due 22 July (according to RNS).
The outcome of voting on special resolutions 10 and 11 might be affected by the court case as they require 75% in favour to be passed.

[wallywoo] 30/7/2013 08:30

court hearing was a non event since all the resolutions were passed (had over 50% of the votes)and the move by JKX to void the rebel shareholderrs votes was no longer relevant

[mpclag] 30/7/2013 06:58

did the court hearing take place to determine if all the resolutions at the agm were passed-was due to commence on 24th July!

[hashertu] 29/7/2013 12:44

"Current production is in excess of 12,000 boepd and we anticipate this continuing for the remainder of the year"

I think this comprises approx 1500 bopd + 10,500 boepd.
Given that a large proportion of this is Russian gas, it is encouraging that Russian gas prices went up 15% on July 1 and there will be another 3% on 1 August.
There will be price rises of 15% on 1 Aug 2014 and 2015.

Average for H1 was 9040 boepd.

Edit. First impression is that that the report is a little more open and forthcoming than in the past. Let's hope it continues.

[sporazene2] 26/7/2013 12:16

results on monday

[mpclag] 26/7/2013 12:04

any news on the court hearing? share price on the rise

[nicky21] 15/7/2013 19:44

Salpara111 imo also this has turned the corner..

3 months storage..may be good ..

as if gas prices rise it will be beneficial to JKX...when the gas is released back for sale for jkx...

its only for storage..the govt is not stealing it and selling it on for their gain.

basically we are looking at around 2500-3000 boepd..for STORAGE..


ps.
imo if the ukraine mafia are trying to screw JKX then the UK govt should get involved and also the IMF.am with PAUL DAVIS..SCREW THE CORRUPT MAFIA.

[g8ta] 15/7/2013 17:14

llamarama raised this point a couple of weeks ago about private producers having to put 50% of their gas, from July 1 - Oct 15, into storage.

"Not only do they have to delay sales of half of their products over the next 3.5 months, but they will be additionally charged for this delay."

(Change xx to tt)

hxxp://ukrainian-energy.com/en/news/show/economy/details/648

All pretty awful and dodgy.

[salpara111] 15/7/2013 16:12

I doubt that the other long suffering larger holders would be willing to sell out now for 80 or 90p given that it does appear that the corner has been turned.

[nicky21] 15/7/2013 13:02

wander what the oilgarchs next move is going to be..(ie shall we put in a cheeky offer)



court case regarding the voting is next monday..

[salpara111] 12/7/2013 21:11

I actually don't think there is much more downside to be seen in the share price
I have done some calculations on their production Vs market cap and compared to others in the sector they are not expensive.
My main issues are
1. Not wanting two oilers in my portfolio at once and I am going to give HOIL the benefit of the doubt for the next couple of months
2. the big issue of the disruptive shareholders as I feel that they will really hold the share price back going forward.
On a more general level I do think the market is overbought, there is a real possibility of crisis mk2 as Greece and Portugal are still circling the drain and have no real hope of hitting their financial targets over the next 12 months.

[nicky21] 12/7/2013 19:57

Salpara111..

i know how you feel .theres a court case here on july 22nd..or you could wait another few months here and see how things settle down.

but if they keep rising production you could miss the boat..it is tough..do you wait for a lower entry point..

have taken the gamble and am hoping Paul Davis can turn things around. It is the ukraine tax which has hurt them but i think they are expecting gas prices to rise in the 2nd half of the year so that should help them.

[salpara111] 12/7/2013 16:41

Yeah, I am sceptical of any oiler.
I took a stake in HOIL last year at over 200 when it seemed to be heading in the right direction only to see it tank back to 130, it has since risen to 160 but clearly I am still under water.
I don't like to load my portfolio with too many stocks in the same sector, hence my hesitation on JKX, having said that I just exited Wood Group with a decent gain so I need to find a new home for the money

[nicky21] 12/7/2013 14:06

a snippet from a past RNS..


. Background to the Placing




JKX has achieved significant growth over the last ten years and is an E&P company focused on the former Soviet Union ("FSU"), and a constituent of the FTSE 250 index. The Company has an established track record of successful development and production, with Q3 2009 production of 13,657 boepd. Anticipated production is expected to reach in excess of 20,000 boepd in 2011. The Company's principal interests are located in Ukraine and Russia, with additional interests in Hungary, Bulgaria and Slovakia.