JKX new well in Ukraine exceeds output expectations

JKX Oil & Gas (JKX LN) reported on May 2 that it successfully
tested its WM3 well, the first drilled at its West Mashivska field in Ukraine.
The tested production was 126,000 cubic meters per day of natural gas and 19
bpd of condensate, a total of 761 boepd, or higher than the company’s
expectations. The company expects the well’s initial production will reach
100,000 cubic meters per day (around 600 boepd).

Alexander Paraschiy: The
expected production rate from this new well accounts for about 12% of JKX
hydrocarbon output in Ukraine in 1Q19. So this well, if it produces in line
with plans, should further contribute to the company’s boosted production in
Ukraine. It marks the company’s second consecutive successful new well in
Ukraine and a high chance for new successful wells here. All in all, the news
is likely to be another positive catalyst for JKX stock.