JKX Falls in London as Oil Output Drops in Ukraine, Russia

JKX Oil & Gas Plc, an energy producer active in Ukraine and Russia, fell the most in seven weeks in London trading after reporting a slump in output.

JKX dropped 4.7 percent to close at 90.5 pence, the biggest one-day decline since June 26. First-half production shrank to 7,481 barrels of oil equivalent a day from 9,476 barrels a day a year earlier, the company said today in an earnings report.

The explorer’s Koshekhablskoye project in southern Russia, designed to add output of about 7,000 barrels a day, has been 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.”

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