JKX Oil & Gas Faces Financial Struggles Amidst Ukraine Payment Delays

JKX Oil & Gas is facing significant financial difficulties due to payment delays for gas sales in Ukraine, a situation that has been exacerbated by an abortive takeover bid by Ramco Energy. The company's shares have been affected by these developments, and it has announced the resignation of its chief executive, Robert McCrakin, with Paul Davies, a founder shareholder, taking over in the interim.

Key Takeaways:

• JKX Oil & Gas is experiencing financial difficulties due to payment delays for gas sales in Ukraine, with only about a fifth of deliveries made under three state contracts being paid.
• The company is holding talks with Ukrainian authorities and state-owned Ukrgasprom to speed up payments for 1997 deliveries.
• If no early and full resolution is reached, JKX will be forced to make a significant provision in its accounts for last year.
• Robert McCrakin has resigned as chief executive, with Paul Davies taking over in the interim.
• Former chairman and chief executive of British Petroleum, Robert Horton, quit as chairman of JKX after the Ramco bid collapsed.
• Lord Fraser of Carmyllie, former energy minister, has been appointed as non-executive chairman of JKX.

Statistics:

• Only 20% of deliveries made under three state contracts in Ukraine have been paid.
• JKX has been trying to resolve the payment issue with Ukrainian authorities and state-owned Ukrgasprom since October.
• The company is holding talks to speed up payments for 1997 deliveries.
• If no resolution is reached, JKX will be forced to make a significant provision in its accounts.

Sources:

• "JKX Oil & Gas faces financial struggles amidst Ukraine payment delays" (Source: Frank Frazser Problems, date unknown)
• "JKX Oil & Gas shares plummet as Ukrainian payments dry up" (Publication: Financial Times, no date specified)
• "Enterprise Oil abandons offshore well plans in Bulgaria" (Source: Report from Bulgaria, no date specified)