Commencement of Ukraine Frac Operations

JKX OIL & GAS plc ("JKX")

Commencement of Ukraine Frac Operations

JKX Oil & Gas plc ("JKX") is pleased to announce that the multi-stage frac operation on well R-103 has commenced in its Rudenkovskoye licence in Poltava, Ukraine. Well R-103 was drilled to a total depth of 4,641 metres into the Rudenkovskoye Devonian sandstone reservoir with a horizontal section of just over 1,000 metres at a true vertical depth of 3,650 metres.

The operation, which will consist of nine stages, is expected to take around 40 days to complete with initial flow expected in mid-August. Schlumberger, the frac contractor, is planning to inject more than 1,200 tons of proppant supported by up to 35,000 barrels of frac fluid, making it probably the largest onshore frac in Europe to date. Clean-up is anticipated to take between two to four weeks, with the well reaching stable production approximately one month later.

The first step in the operation, which began on 30 June, is to run in-hole using the coiled tubing unit ("CTU") to set and test the first plug at the end of the well. The CTU will then jet perforate the first set of perforations before carrying out a preliminary mini-frac. This mini-frac will permit fine-tuning of the parameters for the main fracs, each of which will be injecting more than 120 tons of proppant into the formation. The sequence of "plug, perforate and frac" will then be repeated a further eight times.

JKX's Chief Executive, Dr Paul Davies, commented: "A considerable amount of planning and preparation has gone into this pioneering project. We remain confident that the application of this proven technique for tight gas reservoirs will allow us to develop commercially the very large gas in-place in the Rudenkovskoye field."

JKX Oil & Gas plc is an exploration and production company listed on the London Stock Exchange. The Company has licence interests in Ukraine, Russia, Hungary and Slovakia.

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