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JKX Oil & Gas sells Russian Yuzhgasenergie, focuses on projects in Ukraine
KYIV. Oct 5 (Interfax-Ukraine) – The British oil and gas company JKX Oil & Gas Plc with assets in Ukraine and Russia has announced its intention to sell its Russian operating subsidiary Yuzhgasenergie LLC, wishing to fully focus on developing projects in Ukraine, the company said in a statement on the London Stock Exchange on Monday.
"The Company is now actively seeking buyers. Sales proceeds from the disposal of this non-core asset will be used to finance on-going activities and possible further acquisitions in Ukraine. Ukraine remains the Company’s core focus area and the area where it sees the most prospective opportunities," the document says.
It notes that the decision to sell assets in Russia was made as a result of further analysis following previously announced intentions to focus its portfolio on the most promising opportunities.
Based on the data of the London Stock Exchange, JKX Oil & Gas Plc shares have been demonstrating stable growth since the third decade of August this year: during this time they have risen in price by about two times – up to 50 pence per share, whereas over the last year it reached 37.25 pence only in January.
According to the information on the JKX website, it acquired Yuzhgasenergie, which owns a license to redevelop the Koshekhablskoye gas field (Republic of Adygea) with an area of 32.7 square kilometers, in 2007. Construction and commissioning of a gas processing facility at this field was completed in early 2021, and commercial gas supplies began in April of the same year.
JKX’s subsidiary in Ukraine is Poltava Petroleum Company LLC, one of the largest non-state oil and gas producing companies. It holds five licenses for production and one for geological exploration, including pilot production.
The company also owns six production licenses in Hungary, which are also put up for sale: in July this year, a letter of intent was signed with a new potential buyer, and the price of the deal expected this year is about $3 million.
