Elizavetovskoye Licence & Plant Upgrade

JKX OIL & GAS plc ("JKX")

announces

Production Capacity Increase and Award of Production Licence

on the Elizavetovskoye Field in Ukraine

JKX Oil & Gas plc ("JKX") is pleased to announce that it has completed Phase 1 of the production facility upgrade in its Elizavetovskoye field and has been awarded a 20-year production licence for the field.

The Phase 1 upgrade doubles the plant capacity to 30 MMcfd, and includes debottlenecking, improved metering, enhanced condensate separation and the addition of a stand-alone gas-powered electricity supply. Phase 2 will be completed in the fourth quarter and is designed to increase the flexibility of the plant by adding compression and a low pressure gas train.

Well E-301 began production from the A2 carbonate reservoir in early January this year and was followed by well E-302 in March. Average production from the two wells in the second quarter of 2014 was 10.6 MMcfd, with 18 bpd condensate. The plant upgrade has doubled the condensate yield from the production stream.

Drilling of well E-303, targeting the underlying G7-G12 sandstone reservoirs, has just been completed at a total depth of 4,406m, and is now being tested. Results are expected in due course.

The new production licence is valid for 20 years and replaces the existing 5-year exploration licence which was due to expire at the end of November. The licence covers an area of 70.8 square kilometres.

JKX Chief Executive, Dr Paul Davies, commented:

"The completion of Phase 1 of the plant upgrade, on schedule and on budget, is a significant step forward in the development of the Elizavetovskoye field. The award of the production licence for the field by the Ukrainian authorities some months ahead of schedule is a welcome indication that our efforts to increase production at this difficult time for the country are recognised."

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.

ENDS

For further information please contact:

Nadja Vetter/ Lauren Foster, Cardew Group T: 020 7930 0777

M: 07941 340436

M: 07887 676 603