Russian Gas Sales Contract

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

1 March 2012

JKX OIL & GAS plc ("JKX")

ANNOUNCES

RUSSIAN GAS SALES CONTRACT

JKX is pleased to announce that its wholly owned Russian subsidiary, Yuzhgazenergy ("YGE"), has signed a sales agreement with Kubangazifikatziya for the sale of 100% of the gas produced in 2012 from its Koshekhablskoye field in southern Russia.

Kubangazifikatziya is a large Krasnodar-based gas trading company which has been active in the wholesale supply of gas and LPG products since 2008. Its industrial clients in the Krasnodar region include Gazprom Mezhregiongaz and the Afipskiy Oil Refinery. Kubangazifikatziya will take delivery of gas from the Koshekhablskoye field at the export flange and will be responsible for transport through the Gazprom pipeline network to end users. JKX will commence deliveries shortly after receiving its Permit to Operate from the Russian authorities in Moscow.

JKX Chief Executive, Dr Paul Davies, commented:

"Conclusion of gas sales negotiations is an important milestone. This contract gives us flexibility on both initiation of delivery and volumes during the ramp up period. We are delighted to be working with an established supplier as we enter this exciting market."

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, Bulgaria and Slovakia.

ENDS

For further information please contact:

Nadja Vetter / Alexandra Stoneham, Cardew Group 020 7930 0777