Ukrainian Exploration Well Success

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

5 March 2012

JKX OIL & GAS plc ("JKX")

ANNOUNCEMENT OF

UKRAINIAN EXPLORATION WELL SUCCESS

JKX is pleased to announce that it has successfully completed and tested exploration well Z-04 in the Zaplavskoye exploration licence in Poltava, Ukraine.

On completion of a 36-hour multi-choke test, well Z-04 flowed at a rate of 20.8 MMcfd of gas and 1,040 bpd of condensate though a 41/64" choke with a flowing wellhead pressure of 2,684 psi. The well has been tied back to the main Novo-Nikolaevskoye complex processing facility with a 9km flow line and placed on production.

Well Z-04 was drilled to a total depth of 2,937m and penetrated over 20m of Visean sandstones. Drilling and completion of the well took 31 days. Well Z-04 is located to the northwest of the Novo-Nikolaevskoye group of fields within the recently acquired 41.9 sq km extension of the existing Zaplavskoye exploration licence. The Zaplavskoye exploration licence now comprises a total area of 197.5 sq km.

JKX Chief Executive, Dr Paul Davies, commented:

"We are greatly encouraged by this first success on the Zaplavskoye exploration licence. Condensate rich gas is being produced for the first time in the Novo-Nikolaevskoye area from this particular Visean reservoir layer. We are expecting these significant initial flow rates to decline over the coming weeks and the well will be monitored closely as we seek to assess the extent of the accumulation. In parallel, we will be accelerating our appraisal plans for this discovery."

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:

Nadja Vetter/Alexandra Stoneham, Cardew Group 020 7930 0777