Koshekhablskoye Update

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

2 April 2013

JKX OIL & GAS plc ("JKX")

Russian Production Exceeds Nominal Gas Plant Capacity

JKX Oil & Gas plc ("JKX") announces that it has completed the acidisation programme on its three production wells in the Koshekhablskoye field, southern Russia and production is now exceeding the nominal 40 MMcfd production capacity of the gas plant. Increased commercial gas sales are on-going under the existing sales delivery contract.

As announced on 7th February, a hydrochloric acid programme was initiated in January to enhance the productivity of the three production wells in the Koshekhablskoye field by improving conditions in the near wellbore and removing residual drilling fluids in the open-hole sections. The programme was performed sequentially on well-25, well-27 and well-20 with approximately 25 tonnes of 15% acid solution plus inhibitors being deployed in each well.

The coiled tubing unit was first deployed on well-25, the deepest well of the three, which is located on the north flank of the field. This well has now stabilised at a rate of 13 MMcfd with a flowing WHP of 1,650 psi through a 42/64 inch choke. Well-20 and well-27 are located on the crest of the field in the more highly fractured zone, and were anticipated to be more productive. Following acidisation, Well 27 stabilised at a rate of 15.8 MMcfd with a flowing WHP of 3,470 psi though a 30/64 inch choke.

Acidisation of well-20 has just been completed. Initial production rates have reached 15.9 MMcfd with a flowing WHP of 4,745 psi through a 25/64 inch choke. Following initial clean-up, well-20 has been routed through the gas plant with total throughput being stepped up slowly with well-25 production held constant and well-27 being choked back to accommodate production from well-20.

The plant is now operating just above its nominal design capacity and the wells will continue to be opened up slowly to examine the plant's capacity to process throughput beyond the design specification. In-house simulation indicates the main plant units are capable of handling at least 50 MMcfd, and possibly as much as 60 MMcfd. However, some of the interconnecting pipework and valves may need replacement. This work will be carried out by the operations team on-site.

JKX Chief Executive, Dr Paul Davies, commented: "We now have all three wells on-stream and filling our processing plant. I look forward to announcing further increases in throughput over the coming period."

JKX 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 / Alexandra Stoneham Cardew Group 020 7930 0777