JKX Oil reacts to Ukrainian Emergency Legislation
The Board of JKX Oil & Gas plc (“JKX”) has noted that the Ukrainian Government has passed emergency budget legislation which will substantially increase production taxes for the oil and gas industry for the period 1 August 2014 to 31 December 2014. The most significant tax increase is on gas production where the rate will approximately double to a level of 55 per cent.
In light of this significant change to the fiscal environment for independent oil and gas operators in Ukraine, the Board of JKX is evaluating the impact on its ongoing investment programme carefully, and will be taking operational and financial measures to protect the interests of the Company and its shareholders.
A further announcement will be made in due course.