JKX to start gas production in southern Russia in May

JKX Oil & Gas’ (LSE: JKX LN) daughter company Yuzhgazenergy is planning to start gas production at Koshekhablskoye field in Adygea (southern Russia) late May, Interfax reported yesterday citing the Trade Ministry of the Adygea Republic. The field has estimated 2p reserves of 41 mln barrels. The plant has a design capacity of 40 MMcfd (1.133 mln m3), which should allow JKX to achieve its overall near-term production objective of 20,000 boepd. The start of production is in line with the timeline announced by JKX on February 3. In Ukraine, JKX is represented by the Poltava Petroleum Company, the largest non-state producer of oil and gas in the country. Ukrainian businessman Igor Kolomoyskiy owns 27.06% of JKX shares.