JKX hydrocarbon output increases 20% in 2019

JKX Oil & Gas (JKX LN) produced 10,989 boepd of
hydrocarbons in 4Q19, the company reported on Jan. 9. This is 23.8% more yoy and
6.2% lower qoq. Output from the company’s Ukraine assets was 5,731 boepd, or
54.6% higher yoy and 7.8% lower qoq, while the Russian assets’ output was 5,258
boepd, or 3.4% higher yoy and 4.4% lower qoq in 4Q19.

In 2019, JKX’s hydrocarbon output rose 20.3% yoy to
10,748 boepd and the key driver was its Ukrainian assets, with output of 5,584
boepd, or 51.9% higher yoy.

The company also reported on its satisfactory
liquidity position with a USD 20.5 mln cash balance and USD 4.1 mln of hydrocarbon
inventory as of end-December. Also, the company mentioned that it will be debt
free after the final bond payment on Feb. 20.

Andriy Perederey: The 2019
hydrocarbon output was in line with our expectations.

Looking ahead, even after a 6.2% qoq decline, the
4Q19 production rate, 10,989 boepd, is 2.2% higher than the 2019 average,
10,748 boepd. However, we see an output decline on average in 2020 vs. 2019 as
possible because output at JKX’s most successful recently commissioned wells,
IG-142 and IG-103, will continue declining fast.