LONDON, March 2 (UPI) -- Ukrainian shale pioneer JXK Oil & Gas said Monday it returned to full-scale operations in the country after receiving approval from the state gas distributor.
JXK said it was forced to shut down production because of a state decree that required those companies working in the industrial sector to get their natural gas only from state-controlled gas company Naftogaz. That decree expired Feb. 28.
In January, the company said the economic climate in Ukraine was no longer conducive to continue investing in shale natural gas opportunities. Now, the company said it received approval from state entities to move forward with its operations.
"The company has now returned all wells in its Ukrainian fields to full production," a statement read.
In February, the company it started arbitration proceedings against Ukraine under a bilateral investment treaty between the British and Ukrainian governments. The company said it was seeking compensation from the Ukrainian government because JKX investments weren't treated as "fair and equitable."
There was no word on the status of the lawsuit in its Monday statement.
JKX started a multistage hydraulic fracturing operation in Ukraine in 2013, describing it as likely the largest operation of its kind in Europe to date. The company's latest production figures from 2013 show an average of 9,731 barrels of oil equivalent per day, an 18 percent increase from the previous year.
