Koshekhablskoye Field Well-27 Start-up

6 Cavendish Square, London W1G 0PD, England, UK

Tel: +44 (0)20 7323 4464 Fax: +44 (0)20 7323 5258

Web site: http://www.jkx.co.uk

14 August 2012

JKX OIL & GAS plc ("JKX")

ANNOUNCES

 Koshekhablskoye Field Well-27 Start-up

JKX Oil & Gas plc ("JKX") is pleased to announce that gas production from well-27 has commenced in its Koshekhablskoye Field, Adygea, Russia. The well is now flowing to the gas processing facility and production testing is under way. Reservoir response will be closely monitored before ramping up towards its production plateau.

Well-27 was suspended after initial workover and testing at 13.1 MMcfd on a 36/64" choke in 2009. Mechanical problems downhole, ahead of field start-up in March 2012, led to the well having to be side-tracked and re-completed. The Geostream KES-536 rig has now moved to well-20 and begun a workover and re-completion operation.

JKX Chief Executive, Dr Paul Davies, commented: "This is an important step towards achieving the planned capacity of the plant following the setbacks in putting our high performance wells into production in the second quarter of the year."

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