Production increase in the Elizavetovskoye Field

JKX OIL & GAS plc ("JKX")

Production increase in the Elizavetovskoye Field, Ukraine

JKX Oil & Gas plc ("JKX") is pleased to announce the completion of its second development well in the Elizavetovskoye field, Ukraine.

Following the standard acidisation and clean-up procedure, well E-302 produced at a stabilised rate of 6.2 MMcfd and 14 bpd condensate through a 44/64-inch choke with a flowing wellhead pressure of 760 psi during the last phase of the multi-choke test sequence. The well has now been placed on production.

Well E-302 was drilled to a measured depth of 3,156m (2,921m TVD) and was targeted at the primary Permian A2 carbonate reservoir. It has also been engineered to permit deepening to the Upper Carboniferous G7-12 sandstone reservoirs, should that be required at a later date. The N-75 Skytop rig has now left the Elizavetovskoye field to drill development well NN-80 on the Novo-Nikolaevskoye field.

The next well on the field, E-304, will target the deeper G sands and drilling is planned for the third quarter of 2014. The 3D seismic acquisition programme over the field is nearly complete and processing is commencing. The data will aid the selection of well locations for further appraisal and development of the A2 carbonate and G sands reservoirs away from the core producing area.

JKX Chief Executive, Dr Paul Davies, commented:

"We are delighted that the second development well on the Elizavetovskoye has also come on-stream substantially ahead of our initial predictions, with production from the first two wells now approaching the nominal 15 MMcfd capacity of the EPF. We intend to accelerate the appraisal and development of the deeper G-sands and are preparing plans for the expansion of the plant."

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 and Slovakia.

ENDS

For further information please contact:

Cardew Group T: 020 7930 0777

Nadja Vetter M: 07941340436

Lauren Foster M: 07887 676 603