Jkx Oil & Gas Share Discussion Threads

[pessimizer] 05/12/2015 19:39

But none of this news seems to have any positive effect on the s/p. I took a small punt after the court decision thinking that that might move the price up in anticipation of some action, but nothing. Anyone got any ideas what might revitalise this stock?

[wallywoo] 03/12/2015 08:48

Thought this was significant:

hxxp://concorde.ua/en/research/daily/ukraine-finance-ministry-proposes-tax-cut-for-gas-e-in-2016-14816/

Ukraine finance ministry proposes tax cut for gas E&Ps in 2016
December 2 2015
The Ukrainian Finance Ministry’s proposal to reform the Tax Code, published on Dec. 1, proposes more than halving the natural gas production tax for private exploration and production companies in 2016. According to the draft law, new rates for private gas producers will decrease to 29% from 55% (and to 14% from 28% for gas mined from wells deeper than 5,000m). On top of that, the tax base will also change from “marginal price” (which is UAH 6600/tcm, or USD 225/tcm) to the average import price of gas (expected to be about USD 210/tcm in 1Q16).

The draft law introduces another tax regime for gas E&Ps as of January 2018: the production tax rate will be lowered to 20% (and 10% for deep wells), while an additional 15% “surcharge to profit tax” will be imposed on the difference between a company’s revenue from natural gas sales and CapEx into E&P. The negative difference can be shifted to following periods. Meanwhile, payments of the surcharge tax are not deductible from the regular profit tax.

Alexander Paraschiy: The MinFin’s initiative repeats a separate proposal for adjusting taxes on gas E&Ps that was rejected by Ukraine’s parliament (the Verkhovna Rada) on Oct. 6. Recall, on that day, the Rada approved a different populist bill that – like the rejected proposal – also assumed a tax rate reduction to 29% (14% for wells deeper than 5,000m). This alternative draft, however, was not adopted in full by the Rada.

As MinFin’s tax reform has been blessed by the IMF, we believe it has a high chance to be approved by the Rada this time, in the current edition. The bad news for gas E&Ps like Serinus Energy (SEN PW) and JKX Oil & Gas (JKX LN) is that lower taxation will only be implemented as of January 2016. The previous, failed drafts assumed the tax decrease would start in 4Q15, as the Ukrainian government had earlier committed to the IMF.

Nonetheless, the Rada’s approval of these adjustments will significantly improve the profitability of gas E&Ps active in Ukraine. Based on our estimates, the consolidated EBITDA of JKX Oil & Gas would have been 2.2x higher in 1H15 if the proposed tax regime was implemented then. For Serinus Energy, EBITDA would have been about 1.4x more in 9M15 under the drafted tax decrease.
- See more at: hxxp://concorde.ua/en/research/daily/ukraine-finance-ministry-proposes-tax-cut-for-gas-e-in-2016-14816/#sthash.IfUGGNzf.dpuf

[pessimizer] 02/12/2015 15:59

Has anyone seen the Supreme Court's decision? Company putting a rather optimistic spin on it:

KX OIL & GAS plc ("JKX")
Supreme Court Judgment

The Board of JKX ("the Board") announces that the Supreme Court has today allowed an appeal by Eclairs Group Limited ("Eclairs") and Glengary Overseas Limited ("Glengary") and their nominees against the Court of Appeal's judgment that the voting restrictions placed on them on 31 May 2013 by JKX were valid.

The High Court had already found that the Board had reasonable cause to believe that information provided by Eclairs and Glengary in response to requests from JKX for particulars of their respective interests in JKX was false or materially inaccurate. It had further found that the Board acted in good faith with the intention of protecting the Company and its shareholders as a whole.

As a consequence of the Supreme Court's judgment, the votes cast by Eclairs and Glengary since 31 May 2013 do count. Therefore Ordinary Resolution 2 and Special Resolution 9 at this year's Annual General Meeting on 3 June 2015, which respectively approved the Directors' Remuneration Report and authorised the Company to make market purchase of its own shares, were not passed.
The Board will consider the implications of the judgment and will continue to take all appropriate steps to protect and promote JKX's best interests.

[stonefold] 23/11/2015 22:39

On the page


There are Hyperlinks to download documents in Word format.

Нак;аз Дер;жгk7;он 72;др Укр;аїl5;и від; 18.11.2015 № 374 "Щоk6;о ану;люk4;ан 85;я, зуп;инk7;нн03; та пон;овl3;ен 85;я дії; спе;ціk2;ль 85;их доз;воl3;ів на кор;исm0;ув 72;нн
103; над;раl4;и та вст;анl6;вл 77;нн
103; тер;міl5;ів для; усу;неl5;ня пор;ушk7;нь" [55 Kb] (cка 95;ув
072;нь: 371)

Дод;атl2;и [331.5 Kb] (cка 95;ув
072;нь: 349)

The second and larger one 331.5kb is 374d.doc
Which lists the decisions of order no. 374



In Annex 2
the order Derzhheonadr Ukraine on November 18, 2015 № 374
LIST of special permits for subsoil use, which are stopped
(And have 30 calendar days to correct violations)


Examples that have been commented on
Annex 2 List numbers:

12) = Velta


4) and 18) = Ukrgazvydobuvannya



Awaiting comment

6) = RPT


7), 8), 9), and 10) = JKX


It would be nice to know what the alleged violations are.

[wallywoo] 12/10/2015 16:19

I would be surprised, every year or so a bid is talked about but there seems too much risk running a business in the Ukraine and it fizzles out. Best hope here is that JKX get money back from the excessive taxation and then quickly get their fields back in to full production and JKX could quickly get back to generating $50M in cash flow and paying generous dividends, IMO - Still significant political risks here, but that needs to be weighed against significant potential returns

[supertit] 12/10/2015 15:04

Possible bid on JKX>

[wallywoo] 12/10/2015 10:06

Interesting chart now. Could imply the down trend has broken, though certainly one for the brave

[jumbo66] 08/10/2015 22:19

[hd] re jumbo]]]]

[stonefold] 08/10/2015 14:21

Basso joins in by reducing their short postion.

-------------
Closer to the law change to reduce gas production tax.


07-10-2015

"................Ukraine’s parliament approved on Oct. 6 the first reading of a bill #2835 that cuts the natural gas production royalty for private producers to 29% of the gas price from 55%. For those producing gas from deep wells (over 5000m), the royalty rate will decrease to 14% from 28%. The draft law was initiated by MP Yulia Tymoshenko and also reduces the royalty rate for gas produced by state companies to 29% from 70%. The draft stipulates that it will take effect after its publishing, or after the Rada approves it in the second reading and the president signs it. ................."
".........Alexander Paraschiy: The preliminary approval of a tax-cutting initiative is encouraging for domestic private gas producers, inducing JKX Oil & Gas (JKX LN), ..........."

[stonefold] 02/10/2015 09:50

Tenor also reducing their short postion on 29-09-2015.

---
Slight uptick in volume produced and price of LPG.


30-09-2015
At auction of LPG JV Poltava petroleum company has sold 212 tons of resource costs 12200 UAH/t

[flyingbull] 30/9/2015 14:04

The October oil stock challenge is still on….deadline for entries is midnight tonight….



Good luck!!!

fb

[stonefold] 29/9/2015 10:29

At the risk of jinxing the slight upwards trend in the shareprice.
--
Polygon have started on 17-09-2015 to reduce their short position in JKX.



Perhaps they consider that Neptune will continue to increase their stake and that there are fewer willing sellers to be found.

Neptune on 14-09-2015 mopped up some more shares.
6,700,000 @15.95p from Norges Bank.
Neptune Invest & Finance Corp. holds 22,120,598 ordinary shares, representing 12.85% of the voting rights, in JKX Oil & Gas Plc.

----
A draft for the bill to change Ukrainian gas production tax rates was created mid september - If passed on time the improved rates should apply for 01-10-2015 onwards.
News of the Details of the revised law are due any day now.

The trend to improve matters for the oil and gas industry continues.


16-09-2015
Proposed change to law to improve ability of land owners and oil companies to reach agreements for access/work.

--



24-09-2015
The total abolition of the currency restrictions is expected to be completed by mid-2016-Gontareva

"We started the gradual liberalization of all our administrative constraints. Moreover, our task today not only remove all administrative restrictions which were introduced in September last year and February this year, but we want to get out of these constraints in a totally new life, life without the Decree on foreign exchange regulation, dated 1993. It is outdated even 1998 year. We have already begun the liberalization and gradual elimination of restrictions, but the total abolition we are preparing to do, probably by the middle of next year. This is all happening, in the middle of next year we want to go in a totally new currency regulation, "she said in a video message to the participants of Odessa financial Forum," Interfax-Ukraine ".


--
It would be handy if Jkx could sort out some funding options prior to February.

Jkx to attend a "Project Financing in Oil and Gas Conference" 23 -24 November 2015.

[shaf200] 25/8/2015 13:25

Is this DOG completely bust... very little share price movement...

[stonefold] 21/8/2015 15:34

Rns implies Blackrock are completely out.

So Mr Burak Ozdogan - Neptune Invest & Finance Corp.
On 20 August 2015
Adds 5,466,153 shares (from Blackrock)
Neptune'sTotal now 15,420,598 8.96%

[stonefold] 21/8/2015 10:32

Blackrock in or out ?

17-08-2015 16:43 transaction for 5,466,153 shares = 3.18% @ 16.25p NT

Then reappears again on

20-08-2015 10:12 transaction for 5,466,153 shares = 3.18% @ 16.25p NT

Showing on some volume charts for 17th.
Have they sold, rolled over into another nominee account or pressed the wrong button then corrected things?

[stonefold] 18/8/2015 10:28

After a bit more digging – JKX appears to have had three arbitration claims ongoing.
SCC
ICSID
UNCITRAL
----
ICSID - has been concluded (by mutual consent of the parties)

SCC - I presume will be the next to conclude (from re-reading RNS of 23-07-2015 which
states “……The proceedings have now been consolidated under the UNCITRAL Arbitration Rules. ………”

-----
Of the matters in the arbitration claim:

It would be very unlikely to see a repeat of the temporary sales monopoly previously applied by Naftogaz, as it would be deemed illegal under a subsequent law on energy markets adopted in Ukraine, which seeks to align Ukraine with the requirements of integration with the European Union.

The need to bring the gas production tax down from the current 55% to 28%.
The Ukrainian cabinet have proposed a draft law which would bring it from 55 to 29% and would come into effect on 01-10-2015. There is to be further discussion of that proposed law on 27-08-2015 – if a progressive parliamentarian chose to raise an amendment to lower it to 28% then some including the Minister of Energy would vote for it.

Currency controls – There has been an few months of calm and stability on the exchange rate for the Ukrainian Hryvnia. Government debt restructuring negotiations are close to a possibly favourable outcome. Financing programs with IMF and others are in operation.


Transcript of an IMF Conference Call on Ukraine
Washington, D.C.
August 4, 2015
Participants:
Nikolay Gueorguiev, Mission Chief for Ukraine

“…..QUESTIONER: A question on the capital controls, there is a reference to a roadmap on the gradual lifting of those controls. Can you comment on which measures will be lifted first and when, and are you saying that all capital controls must be removed by next April?
MR. GUEORGUIEV: There is a roadmap; I believe the national bank has mentioned in their public communication some of its basic elements. And they did actually relax some restrictions already on June 3, so this was the first stage of the implementation of this roadmap. The roadmap is generally conditions-based, and I won't go into details here, but these conditions are related to further progress in macroeconomic stabilization in Ukraine, and as stabilization becomes firmly entrenched, more and more restrictions will be lifted. …..”

----

That just leaves the claim for $180m.

[stonefold] 14/8/2015 10:25

ICSID arbitration
Status of Proceeding: Concluded
Outcome of Proceeding: Order taking note of the discontinuance of the proceeding issued pursuant to ICSID Arbitration Rule 43(1) on August 11, 2015.

[stonefold] 29/7/2015 17:01

Contingent liabilities
Pay or receive approx. $3.0m
UK Supreme Court decision due soon (would have been last week - but at the last minute additional written material was submitted). In my opinion based on the video of the case I would side in favour of JKX - as any shareholder unhappy with the sanction applied upon them, could either
supply the requested information
or take the company to court stating why the sanction was unlawful.

------------

Arbitration
Claim for $180m
So far the arbitrators have awarded in JKX's favour as have the Ukrainian courts.
An out of court settlement for a lower amount might be a quicker solution. Also the payment could be partially in a non cash form such as tax credit against future production or discount for purchase of new subsoil licences.

The Ukrainian Government's plan to reduce the production tax from 55 to 29 % with effect of 01-10-2015 has not yet been debated by parliament - it is not impossible for it to get amended to 28%.

---------------
24-07-2015 good to see subsoil auctions are being filmed for greater transparency.
Jkx were amongst the bidders for new licences.

[deanroberthunt] 29/7/2015 13:21

Every which way is GRIM....

[wallywoo] 24/7/2015 09:37

Potentially significant news today. We need the Ukraine government to comply and the market to acknowledge then we are off to the races. At the moment everyone is waiting and cautious. One for the brave

[jumbo66] 15/7/2015 12:09

nice to see u xwp [hd]

[jumbo66] 15/7/2015 12:08

:-}}} [hd] nice to see u xx re jumbo

[empirestate] 12/7/2015 23:11

could see 10p here pre half year stats end of this month

[flyingbull] 30/6/2015 16:08

The July oil stock challenge is on. Deadline for entries is tonight at midnight. Good luck!!!