Initiation of Gas Deliveries in Russia

15 May 2012

JKX OIL & GAS plc ("JKX")

ANNOUNCES

INITIATION OF GAS DELIVERIES IN RUSSIA

JKX Oil & Gas plc ("JKX") is pleased to announce that commercial gas delivery from the Koshekhablskoye field in southern Russia has commenced.

Commissioning of the processing plant and associated facilities at Koshekhablskoye was completed in the first quarter of the year with gas in the plant. Gas has been flowing to the Gazprom network since mid-April as part of the plant acceptance procedures. Regulatory inspections and approvals have been formally concluded this month.

Work started at the beginning of the year to bring wells 20, 27 and 25 into production in readiness for plant start-up. Well 20 is now producing to the production facility and debottlenecking is in progress. The next well scheduled for production is well 27 where the completion is currently being re-run following difficulties in removing the temporary plug after the extended shut-in period. As reported previously, testing of well 25 indicated a partial blockage downhole and a further side-track is now planned at the end of the second quarter.

JKX Chief Executive, Dr Paul Davies, commented:

"We are very pleased to have finally started gas deliveries from the Koshekhablskoye field. This event marks a significant milestone in the development programme and, helped by the recent award of the Giorgievskoye licence, enables us to focus on the next phase of development of the 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, Slovakia and Bulgaria.

ENDS

For further information please contact:

Anthony Cardew / Nadja Vetter / Alexandra Stoneham, Cardew Group T: 020 7930 0777