logo-loader
viewJKX Oil & Gas PLC

JKX Oil & Gas investors eagerly await flows after successful fracking in Ukraine

oildrillingrig350_521dc38543cd6.jpg

Investors in JKX Oil & Gas (LON:JKX) are now eagerly awaiting flow testing on the R-103 well in Ukraine after the company confirmed the successful completion of a 10-stage fracking programme.

The plugs in the intervals are now being drilled out and the company expects the 'flow-back' phase will be complete in 3-to-4 weeks, with flow tests running for a further 4-to-5 weeks after that.

"We are very pleased to have successfully completed this 10 stage frac operation in Ukraine," said chief executive Dr Paul Davies.

"Conditions have been difficult but overall the execution has been better than anticipated.

"Seven of the frac stages have achieved or exceeded design predictions, two were below expectations and only one was unsuccessful.

"The next few weeks of clean-up and flow stabilisation will be critical and we are encouraged that the well is already flowing gas to surface together with frac fluids."

City broker Oriel Securities reckons JKX's current share price underplays its potential and that the outcome of the R-103 well could be a catalyst.

By Oriel's estimation a success would add around 65p to the group's valuation, which currently stands at 124p per share.

That valuation itself is already way off what the market thinks the share is worth.

On AIM, JKX shares edged just 1% higher to trade at 67.25p.

The gap between the market's valuation and the broker's will narrow, Oriel says, as JKX ramps up production and demonstrates that its operational problems are behind them.

Quick facts: JKX Oil & Gas PLC

Price: 24.1 GBX

LSE:JKX
Market: LSE
Market Cap: £41.39 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Arcturus Therapeutics sees 2020 as a transformative year for company

Arcturus Therapeutics Inc (NASDAQ: ARCT) CEO Joe Payne sat down with Proactive's Steve Darling at the 12th annual LD Micro Conference in Bel Air. The San Diego-based company is developing a portfolio of RNA therapeutics for the treatment of diseases with high unmet medical needs. According to...

25 minutes ago

2 min read