International arbitration update

30 December 2016

JKX Oil & Gas plc

("JKX", the "Company" or the "Group")

International arbitration update

As reported in previous announcements, in 2014 the Company commenced arbitration proceedings against Ukraine on the basis of, inter alia, overpayment of production taxes ('Rental Fees').

The main arbitration case, which relates to the overpayment of approximately $180 million in Rental Fees plus damages to the business, was heard in London in early July 2016. At the time of the Company's operational update issued on 21st September 2016, the Company had anticipated receiving a decision from the tribunal by the end of 2016. To date no decision has been received.

The Company will update the market upon receipt of further information.

ENDS

JKX Oil & Gas plc +44 (0) 20 7323 4464

Russell Hoare, Chief Financial Officer

Stockdale Securities +44 (0) 20 7601 6100

Robert Finlay, Daniel Harris

EM Communications +44 (0) 20 3709 5711

Stuart Leasor, Jeroen van de Crommenacker