Jkx Oil & Gas (LON:JKX) announced their 2009 results this morning. The oil and gas exploration and production company with licenses in the Ukraine, Georgia, Italy, Bulgaria, Turkey, Russia and the United States announced this morning a 4% increase in dividend for the period, positive results from a workover well programme in Russia and increased levels of gas delivery in Ukraine following a successful tie-in to the Soyuz gas trunkline. The company also revealed it had initiated production in Hungary and raised $61 million following a share placing.
During 2010, Jkx plan to invest $230 million, of which $110 million will be invested in Russia and $90 million in the Ukraine, with the remainder balance to be invested in the Hungarian operations. In terms of production, they are increasing production targets for 2011, up to 20,000 boepd, focusing particularly on the Rudenkovskoye prospect, where they anticipate an increase from 2% of JKX's Ukrainian production in 2009 to 25% in 2012. Chief Executive, Dr Paul Davies, commented:
"2009 was a year of steady progress which laid the foundations for the successful share placement. The initial success of the workover programme in Russia and initiation of production in Hungary were underpinned by solid production in Ukraine. These have combined to reinforce our confidence in the potential of our asset portfolio, and having strengthened our balance sheet, we are positioned for significant growth."
