JKX reports decline in production in 1Q12, project start in Russia

JKX Oil & Gas (JKX LN) reported yesterday its 1Q12 production averaged 7,330 boepd (-18% yoy), including 7,000 boepd (-15% yoy) in Ukraine. Average selling prices increased by 50% yoy for gas (to USD 12.4/Mcf) and by 8% yoy for oil (to USD 99.8/barrel). JKX also said it commissioned a gas processing plant in the Koshekhablskoye field in Russia and launched sales from there in mid-April. In May, the company was awarded a license for exploration of the Giorgievskoye field (171 km2), which is adjacent to the Koshekhablskoye field.