OREANDA-NEWS. November 17, 2010. JKX Oil & Gas PLC, Ukraine-focused oil and gas explorer, reported a 34% yoy decline of daily oil and gas production in Ukraine in 3Q2010, as the company Chief Executive, Dr Paul Davies, announced on Nov 15. Average 3Q2010 production in Ukrainian fields was 1.181.7 toe comprising 1.100 Mcm per day of gas and 335.4 toe of oil and gas condensate.

Millennium Capital consider the news as NEGATIVE for the company. The Ukrainian fields are the most important for the company as they constitute about 96% of the group’s production total. The notable reduction of the production volume in 3Q2010 has been due to the delay in the mobilization of the second drilling rig at Poltava field (Ukraine) with a  subsequent four month’s delay in the development drilling schedule. However, the company management confirmed that the rig was finally mobilized at the end of October and is now up and running. Therefore, production levels in Ukraine should recover towards the end of the year.