Pre-paid swap transaction with Credit Suisse

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

17 June 2011

JKX Oil & Gas plc

Pre-paid swap transaction with Credit Suisse

JKX Oil & Gas Plc ("JKX") announces that it has concluded a pre-paid swap transaction with Credit Suisse International. The transaction secures $50m for capital expenditure and other purposes. While JKX is sufficiently funded to deliver on existing project developments it provides the Company with the flexibility of additional funding in advance of production initiating in Russia.

The $50m is repayable over an eighteen month schedule commencing in September 2011, concluding with a final payment in November 2012.

The transaction has been structured to enable repayment by JKX from future sales of oil. Under this structure, JKX has hedged forward sales of Urals Med crude oil at $94.00 per barrel while retaining value if prices rise above $130 per bbl.

The Urals Med index is the closest international benchmark for the range of oil and gas produced by JKX and delivered in local markets. The volume allocated represents approximately 10% of the Group's current daily production on a barrel of oil equivalent basis.

ENDS

For further information please contact:

Nadja Vetter / Alexandra Stoneham Cardew Group +44 (0) 207 930 0777