2009-08-19-2007-09-01

WI

JKX Oil & Gas Plc, London, (London: JKX) plans to acquire 100% of the license in Koshekhablskoye gas field in southern Russia from Russia-based Yuzhgazenergie LLC for US$50 million. Peak production is expected to be 50 million cubic feet of gas per day in 2011. Proved reserves are 114 billion cubic feet and proved and probable reserves are 216 billion cubic feet. This represents an approximately 85% increase in JKX's proved and probable reserves. JKX will fund the transaction from existing cash. JKX chief executive Paul Davies says, "This strategic acquisition represents a significant opportunity for JKX to increase its reserves and asset base and to capitalize on its proven experience of operating in the region. The purchase of the Koshekhablskoye Field will provide us with a timely entry into the dynamic Russian gas market."