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Dec 12 JKX Oil and Gas Plc said on
Monday that Ukraine's proposed law to reduce the country's gas
production tax to 12 percent from a maximum of 29 percent for
new wells will help the company's investment plans.
"The new law will have a material impact on the Group's
plans for investment in Ukraine and, specifically, on the
implementation of the field development plan for the Rudenkivske
gas field," Chief Executive Tom Reed said in a statement.
Ukraine, which stopped buying Russian gas in November 2015,
passed a legislation in January this year to reduce the tax on
gas production in the country to 29 percent from 55 percent.
The Ukraine government has relied on gas from storage and
reverse flow purchases from European Union neighbours since
relations broke down over Russia's annexation of Crimea and
support for pro-Russian separatism.
The company also reported a 1.6 percent fall in its average
production for November to 9,746 barrels of oil equivalent per
day (boepd), compared with the previous month.
JKX shares were largely unchanged on the London Stock
Exchange, compared to a 2.8 percent in STOXX Oil and Gas index
due to a spike in oil prices.
(Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Amrutha