JKX Oil & Gas reported on January 17, 2017, that the group production averaged 9,954 barrels of oil equivalent per day in December, 2.1% higher than in the previous month. Average production for 2016 was 10,083 boepd - 12.1% higher than in 2015.
JKX in 2016 reduced its average daily hydrocarbon production in Ukraine by 7.5%, to 4,001 boepd.
In Ukraine, gas production was adversely affected by hydrates in flow lines caused by cold weather.
The Group continued the implementation of its field development plan (FDP) for the Rudenkivske field.
After a successful workover, another Rudenkivske well (NN47) located in the north of the field tested gas and condensate from the V-25 interval in the Visean sands - the main focus of the FDP.
The well tested an initial maximum rate of 16.9 MMcfd and 668 boepd of condensate on a 137/64th choke prior to declining to 11.5 MMcfd of gas and 255 boepd of condensate within 36 hours.
Preliminary estimates of gas initially in place are 0.44 Bcf.
JKX Oil & Gas adds: «On December 21, 2016 Ukraine's Parliament passed legislation reducing the royalty on oil production from a maximum of 45% to 29%. Disappointingly, the proposal to reduce the gas royalty from a maximum of 29% to 12% for new wells, which was passed at the 1st reading, was excluded from the 2nd reading and therefore failed to pass into law. The Company continues to believe that reducing gas production taxes is a critical step to making Ukraine's gas sector attractive for investors, which, in turn, will support the Government's stated goal of energy independence.»
In Russia, Well 25 and Well 27 were acidised resulting in increased gas production, in particular the company's assets in Russia showed an increase in daily production by 30.2%, to 6,082 boepd.