The Board of JKX has decided that the combination of Ukrainian Government-imposed restrictions on selling its gas to industrial clients and the punitive rate of gas production tax requires the Company to suspend its planned 2015 capital investment programme in Ukraine until the economic parameters for investment improve.

Consequently, the Skytop drilling rig is being stacked following its recent completion of well Ig-140, and operational and ancillary costs reduced.

Further to the announcement of sales restrictions imposed on private gas producers by the Ukrainian Government Decree of 29 November 2014, JKX reports that it sold approximately 80% of its December gas production capacity to industrial customers, with only 20% of its gas production capacity shut-in during the month.

Tags: JKX Oil & Gas plc