Eastern European-focused oil and gas firm JKX saw production rise by more than 20% for the first half of 2013 after posting a $7.5m profit.
The results, a substantial turnaround on the $5.1m loss made in the same period last year, comes despite revenues dropping 11.4% at the company.
Production decreases in the Ukraine, and lower prices for oil and gas, were offset by reaching full plant capacity in Russia and attractive LPG prices.
“These are a solid set of half-year results which underpin our ability to continue the transformation of JKX over the full year,” said chief executive Paul Davies.
“Development drilling and the workover programme in Ukraine has been relaunched after a pause of seven months. The increased investment in Ukraine has already yielded first results and we have continued to benefit from strong oil, gas and LPG realisations which are expected to remain firm throughout 2013.
“We achieved a milestone in June by beginning the multi-stage frac at our Rudenkovskoye field. We have already completed the first three out of the nine stages and anticipate initial results at the end of the third quarter this year. T
“This operational progress coupled with the successful placing of $40m convertible five year bond in January provides JKX with an excellent platform from which to create shareholder value from production growth in Ukraine and the expansion of its activities in Russia.”
The company said it had strengthen its liquidity significantly after settling short-term borrowings last year and completing its five-year convertible bond, with the increased cash reserves to be used to fund new projects in the Ukraine and Russia.
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