The Ukrainian Government issued a decree on 29 November 2014 directing major industrial buyers to acquire their gas solely from the Ukraine state-owned gas company Naftogaz during the three-month period commencing today. A number of these named entities were previously contracted to receive gas produced by JKX's Ukrainian subsidiary in the period.
The Board of JKX will assess the impact of the decree and the actions required by the Company to reduce its impact on operations in the Ukraine. JKX has placed some of its December gas production with industrial customers who are not named in the decree.
The Board of JKX currently believes that the Company's gas sales in Ukraine may reduce by up to 50% in December, and this will necessitate shut-in of a proportionate level of gas production.