Bulgaria Exploration Update

Source: www.gulfoilandgas.com 11/5/2010, Location: Europe

JKX Oil & Gas plc announces that the Shkorpilovtci South West R-01 exploration well on the B1 Golitza licence (1,149 sq km) in east Bulgaria was drilled to a total depth of 837m and has now been plugged and abandoned.

Significant gas shows were observed during drilling of both the primary target Avren Formation channel sand complex and the underlying secondary target Dvoynitca Formation sandstones. However, wireline data in the Avren Formation indicated poor reservoir permeability, and consequently a well test was not performed. The well appeared to have encountered a channel margin in this location and the shallow depth to the primary target precluded a geological sidetrack. The highly laminated underlying secondary reservoir was determined to be water wet.

JKX is disappointed with the lack of success of both recent Golitza wells, but believes that it and its co-venturers can integrate the information from these wells with the 3D seismic to high-grade further exploration targets within the Avren Formation.

. JKX (40%) operates the Golitza B1 licence with co-venturers Balkan Explorers (30%) and Sorgenia (30%).

The Company will provide an update on its wider exploration activities in its forthcoming Interim Management Statement.


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