Eastern-European focused exploration firm JKX Oil & Gas has recorded close to a 50% year-on-year increase in its daily output rates as production from its Ukrainina assets “exceeded expectations”.
The company’s output increased from 6844 barrels of oil equivalent per day (boepd) in the first quarter of 2013 to 10,235 boepd for the same period this year.
The increase was stimulated by the launch of the Elizavetovskoye gas field in Ukraine in January.
The company is looking to double the plant’s capacity to 30 million cubic feet per day (MMcfd) by the end of the third quarter, and aims to increase its Russian Koshekhablskoye plant’s capacity to 60 MMcfd by year-end.
However, the growth in output rates was partly offset by a reduced production from Koshekhablskoye field in Russia due to tubing issues in two wells.
“In Russia, production is constrained to around 80% of base capacity by tubing issues in two wells which will be rectified as soon as a suitable rig is mobilised,” said Dr Paul Davies, JKX chief executive.
“Oil, gas and LPG prices in Ukraine remain strong, although gas realisations have been affected by devaluation of the Ukrainian hrivnya in the period. We anticipate gas realisations in Russia to move slightly higher after the mid-year.
“Despite the difficult political situation in the east of the country, our operations and commercial activity in Ukraine continue to be unaffected.”
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