Energy company JKX unfazed by Ukraine's troubles

No trouble for energy operations in Ukraine for JKX Oil & Gas.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   March 28, 2014 at 9:46 AM
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Despite recent political turmoil, JKX Oil & Gas, a company focused on Ukraine, said its shale gas production was in line with expectations.

Ukraine in November descended into chaos after the former administration of Viktor Yanukovych decided to suspend efforts to sign free trade and association agreements with the European Union. He was ousted last month and Russia has since annexed the Ukrainian peninsula of Crimea.

Paul Davies, chief executive officer of JKX, said he was certain exploration and development programs in Ukraine would proceed as planned.

"We have delivered our targeted production growth and continued to build our reserve base," he said in a statement Thursday.

Ukraine is one of the Eastern European countries rich in shale natural gas. JKX said it's production in Ukraine for 2013 averaged 9,731 barrels of oil equivalent per day, an 18 percent increase from the previous year.

The country's Rudenkovskoye shale deposit, Davies said, is the "largest untapped gas resource" in the country.

The Ukrainian government has said there may be enough natural gas in shale reserve areas to meet the country's needs without imports.

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