JKX Oil & Gas Increases Top Line 40% yoy in 2007

JKX Oil & Gas (JKX LN: N/R), a British oil & gas production company with its major production assets in Ukraine, today released its 2007 results. Its top line increased 40% yoy to USD 184.5 mln and operating profit rose 3% yoy to USD 108.6 mln. Operating profit net of provision for impairment/write off of exploration costs (USD 17.7 mln) grew by 19% yoy to USD 126.3 mln. Net income decreased by 4% yoy to USD 74.4 mln, while net of provisions, it increased by 18%. Total hydrocarbon production increased by 13% yoy, to 4,591 Mboe (2,022 Mbbl of oil and 15.4 Bcf of gas), daily rates rose from 11,146 to 12,579 boepd. Realized oil price gained 11% to USD 60.4/bbl; realized gas price climbed by 40% to USD 3.95/Mcf (USD 139.5/tcm). The company also reported that tying-in its fields to the high-pressure Soyuz pipeline to remove constraints on its gas production will be postponed to 3Q08; earlier the plan was to complete the connection in 1Q08. JKX also said its recent USD 50 mln acquisition of the Koshekhablskoye Gas Field in Russia has brought the company’s proved plus probable (2P) reserves up by 72%, and as of 2007 eoy the field accounted for ~1/2 of the company’s total 2P reserves.