JKX H1 profit jumps

By Tom Bergin

LONDON (Reuters) - Oil and gas explorer JKX Oil and Gas (JKX.L) reported a 64 percent rise in net profit on Friday, largely meeting analysts' expectations, but a buoyant outlook for Ukrainian gas prices sent its shares soaring.

Ukraine-focussed JKX said its net profit rose to $61.8 million (34 million pounds) as higher prices for oil and gas more than compensated for a 10 percent fall in its production, which is mainly of gas.

"No major surprises," analysts at Fox-Davies Capital said in a research note, adding: "Production is a little bit disappointing".

However, JKX shares, which opened lower after the results, rose almost 10 percent after Chief Executive Paul Davies said the price JKX receives for its Ukrainian gas could rise by another 38 percent next year - the same rise it achieved in the first half compared with the same period of 2007.

"It is likely to be of a similar order. Certainly it's going to be at least another 20 percent. It could be more, substantially more," he told Reuters in a telephone interview.

JKX shares traded up 5.48 percent at 428.50 pence at 4:21 p.m., outperforming a 0.7 percent rise in the DJ Stoxx European oil and gas sector index .SXEP.

Keith Morris at Evolution Securities said Russia's invasion of Georgia, which has prompted harsh comments between Moscow and Kiev, was a worry for JKX investors.

"Although there is good value here, investors will be wary until the political landscape improves."

(Editing by Greg Mahlich)