JKX.L Regulatory News (JKX)

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14 December 2010

JKX OIL & GAS plc ("JKX")

ANNOUNCES

TEST RESULTS FROM THE RUDENKOVSKOYE R-103 WELL, UKRAINE

JKX Oil & Gas plc ("JKX") is pleased to announce that it has successfully completed and tested horizontal well R-103 in the Rudenkovskoye field in Poltava, Ukraine. Well R-103 is the first of a series of horizontal wells designed to develop and further appraise the significant gas resources of the deep tight gas Rudenkovskoye reservoirs.

Well R-103 flowed at a stabilised rate of 8.1 MMcfd of gas and 18 bpd of condensate through a 85/64" choke with a flowing wellhead pressure of 930 psi over the final 8 hour period of a multi-rate test. The well has been tied back to the main field processing facility with an 8km flow line and will be placed on production.

Well R-103 reached a measured depth TD of 4,641m in the Devonian sandstone with an openhole section in the reservoir of 1,026m, making it the longest horizontal well drilled in Ukraine to date. Drilling and completion of the well, including drilling of the initial 3,850m pilot hole, took 227 days.

The well was drilled using the Skytop N-75 drilling rig. The rig has now moved to well M-169 to drill a horizontal well in the Devonian reservoir of the Molchanovskoye North Field. It will then return to the Rudenkovskoye Field in early 2011 to drill horizontal well R-105 in the Devonian sandstone, an offset to well R-103, followed by well R-104 which will target the Visean reservoir sands present in the northern field area. The Company currently has 21.6MMboe of probable reserves booked in the Rudenkovskoye field and is planning to undertake a reserves review on completion of the 2011 Rudenkovskoye drilling campaign.

JKX Chief Executive, Dr Paul Davies, commented: "The initial flow rates from well R-103 exceed our expectations and are very encouraging. The performance of the well will be closely monitored over the coming months and, together with data from the forthcoming R-105 offset well, will determine whether reservoir stimulation by fraccing to improve productivity is appropriate."

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

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