JKX Oil & Gas could face a potential liability of up to $41 million after a series of legal claims over its Ukrainian operations. As a way to restore investor confidence, the London-listed oil and gas explorer has started to offer more information of its operations.

As shared on Telegraph, news of the potential liability was revealed by the oil firm to its shareholders a month after it had ousted its previous leaders. Scandoil reports of how its leaders were removed from their positions in a controversial manner before the comoany announced a major review of its operations.

According to the operational update, there was a total of three different legal claims over how much production taxes were being paid in Ukraine that were considered "without merit under Ukranian law." These taxes covered certain periods starting in 2007. Aside from the update, the company promised on Energy Voice that they would continue to "contest them vigorously" through scheduled hearings over the next few months.

The update came around the same time when the new chief executive Tom Reed announced a new "significant scope" for improvements for the company's cost savings, productions gains and capital investment. The executive also revealed that the firm's legacy risks were being unveiled as a way of following a "new and transparent approach." According to Reed, they are confident that they are able to manage the risks involved in the firm, but that they felt "that shareholders should be aware of their nature and scope."

Reed filled in the role of the firm's executive just last month after the board had a stealth takeover, led by Proxima, its major shareholder. Aside from Reed, the five new board members of the firm now include Proxima's chief executive, Vladimir Tatarchuk, managing director Vladimir Rusinov, finance director Russell Hoare, and chairman Paul Ostling.

JKX shares in morning trading were down 4pc at 24p. Over a year ago, they were at their highest at 35p.