Jkx Oil & Gas Share Discussion Threads

[jaka] 09/1/2019 13:54

A rough Google translation from an interview with the CEO of PPC pasted below about last year's performance and prospects. Maybe they do extract gas from cattle farms!08:20 / 03 January 2019Viktor Gladun: "We expect possible lower prices for natural gas"Director General of PPC JV PP Gladun told Expro about company achievements and shared plans for the future.- How do you rate the results of the joint venture "Poltava Petroleum Company" for 2018? What has been realized during this period?- In 2018, we successfully restored the drilling program and implemented the program of intensification of extraction! So this year PPC, drilled new wells ?E308 Yelyzavetivskoho field.But they started drilling a new well number 3 in the western Mashivka. Recall that the company did not drill since 2015. Successfully implemented the program and intensification of cattle production as from their own wells and those belonging to the state fund companies, however, are on PPC license areas. Altogether there were 17 cattle farms from the program of work in 2018 - of which 10 wells belonged to the state-owned companies fund.I estimated the results of the cattle positively - 80% of the works were successful according to the financial criterion (the average index on the market for the efficiency of the recovery of wells is 50%). In addition to the cattle, drilled 3 lateral trunks (on wells Ign-101, Ign-103 and Voiv-158). All three wells received a sufficient inflow of products to consider the projects 100% successful. Set the trend in transparency - published geological information. Published information on Elizavetovskoye field, we plan to gradually open the rest of the information. We seek to demonstrate, by way of example, the need for transparency in the field of extraction and use of subsoil.In addition, it is an effective mechanism for dealing with so-called "sleeping" licenses. We have positive results in the LPG direction. We confirmed the compliance of our liquefied natural gas with international standards by obtaining a certificate of compliance with EN 589: 2017 in February 2018. In addition, we succeeded in loading up the LPG plant by 40% by purchasing additional raw materials from external and internal markets. In 2019, we strive to achieve 80% capacity utilization (this is an additional 500 tons per month up to 500 tons / month that we now have), therefore, open to any proposals.- How is cooperation with state-owned companies, in particular, the hire of wells in licensed areas of PPC? Is it possible to develop cooperation in the future?- We have already restored 10 wells from the state fund: 6 of them belong to UHV, 3 - NAK «Nadra Ukrainy», 1 - «Ukrnafta». At the headquarters of the EBRD in London, I have already talked about the potential and effectiveness of such cooperation: more than 90 wells in our licenses belong to the state-owned companies that were mining pre-Soviet times. At the expense of us, we repair the mothballed and liquidated wells, while the owner of the well receives additional income from liquidated wells (which can not produce extraction on their own), while Ukraine receives additional gas.Our cooperation on the intensification of the extraction of wells from the state fund - a great example for the market, as a private company is able to implement projects for the intensification of extraction. In addition to co-operation in the CDM program for liquidated and mothballed wells in the licensed areas of the PPC, we are interested in the new Production Enhancement Contract (PEC) program. The program provides for work at mature sections of the UHV on the conditions of service of wells in order to intensify extraction.For PPC, as companies with a great experience of intensive mining, such a service contract is an opportunity to realize the production potential. While the search for new licensed sites is ongoing, PEC will potentially increase the company's production. We are also open to cooperation with other state-owned companies and consider relevant investment projects.- What drilling and service companies do PPN cooperate with? How is the selection of partners?- We are currently working with Weatherford, Schlumberger, Exalo, Ukrnaftogaservice, NTP Burovova tehnika and Spetsmehservis.Enterprise is involved in seismic research, and the Spetsmekshervis company was a drill contractor. When choosing a contractor we conduct open tenders. Key criteria: technical capabilities, cost of services, terms of work and team experience (with the company's age does not matter - Enterprise, for example, a young company, but has a strong team).- What are the preliminary results and perspectives of implementing the technology of inhibition of lateral trunks?- As a result of drilling lateral trunks in the wells Ign-101 and Molch-158 received an industrial influx of gas and condensate and oil spill. Recently drilled a lateral barrel on the well Ign-103, the results are successful. In the future, we plan to continue drilling lateral trunks - the direction proved its effectiveness and economic feasibility.- What are the plans for drilling and quarrying for 2019?- We are planning to continue drilling new wells at licensed sites of PPC, in particular in the West Mashivka, as well as the intensification of well drilling.- PPC "PPC" is the leader of natural gas trading, how well sales are carried out? How has the gas market changed?- Trading on the exchanges remains for us the priority direction of sales of products. This is a convenient method for conducting transparent bidding: the auction participants are familiar with the starting price and terms of purchase of products. In addition to the site of the Ukrainian Energy Exchange (we sell natural gas) and our own site e-trade (LPG, oil and condensate), we went to the TV "Capital", which put 500 thousand cubic meters of gas. Total through the stock exchange mechanism of the PPC managed to realize 77 million cubic meters of gas. They also marked the achievement: in September, the PPC concluded the first gas supply agreement on the market through the UTS-platform, and in October they were able to realize 10 million cubic meters of electricity at the UES.Such successes demonstrate the obvious benefits of product sales through stock exchanges. Regarding the gas market, the main trends in the market were gas prices in 2018: the first case of sharp price increases was in March, the second - the beginning of the summer's growth, when prices hit more than the previous winter. It is too early to say about qualitative changes in the gas market: most of the reforms in the sector were carried out at the end of the current year or moved to the next year (the transition to daily balancing), so we can objectively assess the impact of legislative changes on the gas market next year.However, I can voice our expectations.We are actively advocating the introduction of such mechanisms as clearing with the central counterparty - the basic mechanism for safe settlement on the stock exchange and a key element of the European gas hubs.Unfortunately, today Ukraine does not have such a mechanism. We hope that such a mechanism will be implemented next year - ready to take an active part in advocating the need for this instrument, because market development depends on it. We also continue to insist that in further industry reform, there should be no additional burden on market participants in the form of new regulators and additional financial burdens.- In your opinion, will the natural gas market grow next year?- We expect a possible reduction of prices for natural gas. There are several prerequisites for this. Among them, dependence on European hubs, those in turn are sensitive to many factors (from world politics to weather forecasts). Among the internal factors may be a significant drop in demand. The agenda is now full of talks on energy-saving technologies and alternative energy. At the same time, oil and gas companies continue to intensify production.Obviously, Naftogaz will have influence and position on the market, because today the national company has a direct influence on the level of prices in the domestic market

[gregpeck7] 09/1/2019 11:45

Outstanding buy at these levels.. Still not sure most people realise they won the last court case which was a huge positive...

[kingkongtimmo] 08/1/2019 19:23

35k delayed buy. JKX keeps creeping up

[gregpeck7] 07/1/2019 13:25

Added a few more here today. Such a bargain still.

[kingkongtimmo] 02/1/2019 20:16

The yearly report, which I expect within the next week, should show exactly why the bod and others were rushing in, Size. I have a hunch it will be excellent

[s1zematters] 02/1/2019 19:21

All very quite on here just like size prefers, since I posted on my first interest at 32p on December 5th this has broken up and looking to test the 2018 high of 45p in the next few weeks hopefully.
That said, a positive tax hearing could spike this up significantly!
I still ponder why the Ukraine MP bought a huge chunk and why the all the bods members and even ones wife splashed out on 100k at 42p in November ? Was it the huge price hike of gas in Ukraine or do they know something we don't?
I wonder if a RPT AND JKX merger/takeover would make for an interesting story?

[s1zematters] 05/12/2018 17:47

Another very strange thing I have noticed about this share some time ago is the small sell at the open each and every day for the exact same number of shares.
It happens every day and if you look back has done so for a long time.

I think it logical using common sense and reason that now a prominent Ukrainian politician is a large holder these decisions could continue to go the companies way.
The next hearings are for $27 million and the co have already made provision so that would go straight onto the bottom line on a co with a market cap of just 60 mill that has some significant producing assets.

[s1zematters] 05/12/2018 17:43

That article on the 22nd November seems odd, it references a ruling on the 19th September and today the company announced it had won the first of the 8 hearings.

The Court found in favor of PPC and it ruled that Tax Notification Decisions previously issued against PPC were illegal and will be cancelled. This decision might be subject to appeal in the higher courts in Ukraine.

I am no expert on this company and the Russia/Ukraine handbags at dawn situation doesn't help but does it get any better than 6 bod members and one of there wife's buying shares just a month ago at 46-40p?


Prices of gas have almost doubled in Ukraine recently and work over seems to have boosted output, this seems on face value a good punt at these levels?

[jaka] 23/11/2018 17:20

More of the same. Doing business over there is almost impossible. Ukraine's Supreme Court pulls the plug on JKX emergency award enforcementUkraine November 22 2018By resolution dated 19 September 2018 (the "Resolution") Ukraine's Supreme Court confirmed denial of enforcement in Ukraine of the emergency award (the "Emergency Award") rendered in accordance with Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce (the "SCC Rules") in JKX Oil & Gas plc et al v. Ukraine case. This Resolution is final and cannot be further challenged.The dispute originated from Ukraine's 2014 decision to drastically increase rental fees for natural gas production from 28% to 55%. JKX Oil & Gas plc and several other companies (the "JKX") instituted a series of investment arbitrations against Ukraine under Energy Charter Treaty, Ukraine-UK and Ukraine-Netherlands BITs, including arbitration under SCC Rules. On 14 January 2015, the emergency arbitrator Rudolf Dolzer issued award (the "Emergency Award") whereby ordered Ukraine to temporarily refrain from applying the increased rate of rental fees (i.e., above 28%) to JKX until the tribunal reached decision on interim measures.After several rounds of consideration of the case by Ukrainian courts, the Supreme Court finally confirmed refusal to enforce the Emergency Award with reference to public policy violation and lack of proper Ukraine's notification about the investment dispute.In particular, the Supreme Court accepted Ukraine's argument that enforcement of the Emergency Award would result in application of different tax rates to a particular person without amendment of relevant tax laws. The Supreme Court decided that this approach would contradict fundamental principles of Ukrainian tax legislation and accordingly would run contrary to Ukrainian public policy. The Supreme Court opined that any special treatment of taxpayers is possible only by amendment of relevant tax laws.Further, the Supreme Court noted that JKX did not comply with the three-months cooling-off period in accordance with Article 26(2) of Energy Charter Treaty. JKX sent the notice of investment dispute to the Administration of the President of Ukraine, whereas the Supreme Court ruled that the notice should have been sent to the Ministry of Justice. The Supreme Court oddly treated that circumstance as a ground to refuse enforcement under Article V(1)(b) of New York Convention (i.e., Ukraine was not properly notified about arbitration).At the same time, neither the Supreme Court nor the lower courts ruled out the possibility of the enforcement of emergency awards in Ukraine in principle. In particular, the Supreme Court did not opine on whether emergency awards can be enforced under New York Convention, but explicitly referred to Article V of New York Convention when citing legal grounds for refusal of the enforcement. Therefore, there is likelihood that Ukrainian courts will enforce emergency arbitral awards in other proceedings.Still, the fate of the Emergency Award in Ukraine posed a number of unanswered questions. Although the Supreme Court appears to have impliedly recognised that emergency arbitral awards are enforceable under the New York Convention, the Resolution demonstrates that Ukrainian courts tend to treat with caution arbitral awards, which require Ukraine to temporarily apply different tax treatment to any person.

[kingkongtimmo] 20/11/2018 13:48

Looks like a few took the op

[brucie5] 20/11/2018 10:29

Are we good value yet?
;

[jaka] 15/11/2018 10:51

Well, they're filling their boots if no one else is!

[brucie5] 15/11/2018 08:10

Buying by family and friends.

[kingkongtimmo] 14/11/2018 19:11

No problem, nothing rarely moves when it should. Accumulate and wait for the rerate. From a TA perspective 34 then 50 would seem logical and hopefully fits in with the cool off, then build in anticipation into Q4 results.

[from8to800] 14/11/2018 12:28

And yet this isn't tagging along for the ride.

[gregpeck7] 14/11/2018 09:17

Natural gas reversed and gone blue again today... Through 4100 now....

[gregpeck7] 13/11/2018 11:31

Gas flying holding above 4000.. amazing.

[gregpeck7] 13/11/2018 10:49

Yep this one is under the radar. 10 million of unsold inventory and a 10 percent stake in unb are probably worth the market cap alone, meanwhile output is increasing , of which ninety percent is gas. Gas price just touched 4000... up over 5 percent.

[brucie5] 13/11/2018 10:47

Come to join you this morning, as this chart looks very strong. Re. natural gas, also worth looking at the ETFs, perhaps. NGAS or LNGA, which has been romping ahead.

[cf456] 13/11/2018 10:03

Yes, Natural Gas continues to soar.

Very strong indeed over the past few months.

[from8to800] 13/11/2018 09:05

80k shares bought in the first hour of this session. "Hoovering" does indeed seem like the appropriate term.

[gregpeck7] 13/11/2018 08:12

Nat gas up another 4 percent today...

[kingkongtimmo] 13/11/2018 07:32

I'm losing no sleep here, will keep adding whilst under the radar

[gregpeck7] 13/11/2018 07:16

Natural gas approaching 4000, huge rise in price this month. Jkx must react soon, 90 percent of production is gas..

[gregpeck7] 07/11/2018 23:45

Nice volume today.. Now come on JKX, take the 50p!