JKX Falls Most in Seven Weeks as Output Drops in Ukraine, Russia

JKX Oil & Gas Plc (JKX), an oil and gas producer active in Ukraine and Russia, had the biggest intraday decline in seven weeks after reporting a slump in output.

Shares declined as much as 7.4 percent and traded down 2.9 percent at 92.25 pence as of 9:30 a.m. in London. Production in the first half fell to 7,481 barrels of oil equivalent a day from 9,476 barrels a year earlier, the company said in its earnings report today.

The explorer’s Koshekhablskoye project in southern Russia, which will add output of about 7,000 barrels of oil equivalent a day, was delayed and won’t reach capacity until next year, the company said. JKX also took a charge against its Ukrainian assets of $30.7 million.

“Russia has been a large project with difficulties, but we’ve made progress,” Chief Executive Officer Paul Davies said in a telephone interview. “We anticipate at least maintaining production levels this year and we should see a reasonably significant increase next year.”

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net