JKX plans to complete drilling of Well-5 in Russia in June

JKX Oil & Gas (JKX LN) reported on May 9 that it
partially removed fish in Well-5 in Russia, but still will have to drill a
sidetrack to bypass the remaining fish. The drilling of the sidetrack is
expected to be completed in the first week of June, the company reported.
Recall, JKX reported in early March that its
drilling of Well-5 failed due to the parting of a drill pipe that left a large
fish inside the well.

Alexander Paraschiy:  If completed successfully, Well-5 will be able to contribute
significantly to JKX’s output in Russia, where the company’s gas processing
facilities are loaded currently by less than 50%. However, this won’t add much
to JKX’s overall profit, as netback from natural gas sales in Russia is almost
7x less than in Ukraine. In any case, the news is encouraging for the company.