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 20 January 2014

JKX OIL & GAS plc ("JKX")

Announces

Start-up of the Elizavetovskoye Field, Ukraine

JKX Oil & Gas plc ("JKX") is pleased to announce the start-up of its stand-alone Elizavetovskoye field development with the successful completion of the first development well E-301.The well is now flowing gas to the newly commissioned early production facility which is located some 35 km to the southeast of Poltava, Ukraine. The first export of gas took place on the 15 January 2014.

Well E-301 is now in production following acidisation, clean-up and a multi-choke test sequence. The well is producing at a stabilised rate of 7.2 MMcfd and 3 bpd condensate through a 44/64-inch choke with a flowing wellhead pressure of 685 psi.

Well E-301 was drilled to a measured depth of 3,102m (2,865m TVD) and is the first in a five-well programme targeted at development of the primary Permian A2 carbonate reservoir. The plant has been designed with a nominal throughput capacity of 15 MMcfd to accommodate the carbonate reservoir development although, with initial production at more than double expectations, it may be possible to develop this primary reservoir with fewer wells. Gas is exported via an 11 km, 6-inch pipeline which was connected by a hot-tap to the Ukrainian gas production network in 2013.

The N-75 Skytop rig has now been moved across the three-well drilling pad to the E-302 well head location and drilling is underway. The primary target for the second well is also the A2 carbonate reservoir, but it has been engineered to permit deepening to the Upper Carboniferous G7-12 sandstone reservoirs at a later date. Full development of these deeper sandstone reservoirs will require expansion of the plant capacity.

JKX Chief Executive, Dr Paul Davies, commented:

"Start up at the Elizavetovskoye field has been achieved on time and on budget and reflects the strength and depth of the engineering and management capability of our Ukrainian subsidiary, Poltava Petroleum Company ("PPC"). We look forward to PPC implementing similar projects in the near future."

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

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