JKX.L Regulatory News (JKX)

JKX OIL & GAS PLC

JKX Oil & Gas - Letter to shareholders

The Board of JKX Oil & Gas has sent the following letter to shareholders:

Dear Shareholder

I am writing to you to tell you about the results of the Annual Meeting of your company on Wednesday. More than 81 per cent of all shareholders voted and we were enormously pleased by the overwhelming support. Having taken account of the expected opposition from Eclairs Group and Glengary, almost 100 per cent of our other shareholders who voted were in favour of all resolutions.

We had given an undertaking to the Court that we would record the votes cast at the Annual Meeting both without and with the inclusion of the votes of the Eclairs and Glengary nominees ("the Nominees"). The question of whether or not either nominee was entitled to participate or vote will be determined by the Court at a hearing commencing on 22 July 2013.

I am delighted to be able to tell you that all the Ordinary Resolutions, including the re-election of our Chief Executive, Dr Paul Davies, as a Director, were passed whether or not the Nominees' votes are counted. Therefore Ordinary Resolutions 1 to 9 and Special Resolution 12 have been approved and will not be subject to the determination of the Court. The outcome of Special Resolutions 10 and 11, however, will depend on the determination of the Court. As you know, special resolutions require the approval of at least 75 per cent of those voting and the Nominees together hold about 37 per cent of JKX. Special Resolutions 10 and 11 were approved by over 99 per cent of shareholders apart from the Nominees.

The Special Resolutions in question concern the authorisation of your Board to buy-back ordinary shares and to allot up to 5% of the issued share capital for cash on a non-pre-emptive basis. These are conventional authorisations given to the Boards of almost every public company. They are necessary for the Board to be able to build shareholder value. Mr Kolomoisky's nominees have resisted these Resolutions for the past three years.

I am very pleased to be able to tell you that the difficulties your company confronted in 2012 were successfully overcome and that we began 2013 in a strong position. Following the successful placing of $40 million of convertible bonds in January of this year, our programmes are fully funded. We have the opportunity to extend plant capacity in Russia, development drilling in Ukraine has recommenced and the new Elizavetovskoye project is advancing on-schedule. We expect to announce the preliminary results from our large Rudenkovskoye multi-frac in the third quarter of the year.

Many thanks for your support which is very important to JKX and its shareholders.

Yours sincerely

Nigel Moore

Chairman

Votes cast excluding those of Eclairs' nominee and Glengary's nominee

Votes cast including those of Eclairs' nominee and Glengary's nominee

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