JKX Oil & Gas Driving Ukraines Gas Potential Tom m Ree eed - PowerPoint PPT Presentation

JKX Oil & Gas Driving Ukraine’s Gas Potential Tom m Ree eed CEO EO Ukrainia ian Ene Energy Day ay Lo Lond ndon 12 12 Jun une, 20 2017

Disclaimer The information contained in these presentation materials (the “Presentation”) has been prepared by JKX Oil & Gas plc (the “Company”) . This Presentation is being made for information purposes only and does not constitute an offer or invitation for the sale or purchase of securities in the Company or any of the assets described in it nor shall they nor any part of them form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or otherwise engage in any investment activity (including within the meaning specified in section 21 of the Financial Services and Markets Act 2000 as amended). The information in this Presentation does not purport to be comprehensive and has not been independently verified. While this information has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the Company or any of its officers, employees, agents or advisers as to, or in relation to, the accuracy or completeness of this Presentation, and any such liability is expressly disclaimed. In particular, but without prejudice to the generality of the foregoing, no representation or warranty is given as to the achievement or reasonableness of any management estimates or prospects contained in this Presentation. Such statements, estimates and forecasts reflect various assumptions made by the management of the Company and their current beliefs, which may or may not prove to be correct. A number of factors could cause actual results to differ materially from the potential results discussed in such forward-looking statements, estimates and forecasts including: changes in general economic and market conditions, changes in the regulatory environment, business and operational risks and other risk factors. Past performance is not a guide to future performance. Statements contained in this document regarding past trends or activities should not be taken as a representation or warranty, express or implied, that such trends or activities will continue in the future. No statement in this document is intended to be a profit forecast. You should not place reliance on forward-looking statements, which speak only as of the date of this document. The Presentation is not a prospectus nor has it been approved by the London Stock Exchange plc or by any authority which could be a competent authority for the purposes of the Prospectus Directive (Directive 2003/71/EC). This Presentation has not been approved by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000. The information contained in this Presentation is subject to change, completion or amendment without notice and is subject to verification. Recipients of this Presentation in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements. This Presentation does not constitute an offer to sell or an invitation to purchase securities in any jurisdiction. You will be taken to have represented, warranted and undertaken to the Company that: (i) you have read and agree to comply with the contents and restrictions of this disclaimer; and (ii) you will conduct your own analysis or other verification of the data and information set out in this Presentation and will bear the responsibility for all or any costs incurred in doing so. 2

JKX Oil & Gas (JKX LN) E&P growth portfolio across Central/Eastern Europe and Russia Cont ntinge gent 20 2016 16 Pro roduc uction Reserve rves Resource urces mmboe Country Lice censes Prod Prod Expl Ex Infr nfras astruc uctur ure Gas Oil Oi Total al mmboe mmc mmcf/d mbbl/d mb mb mboe/d /d 1P 1P 2P 2P 3C 3C ✓ Ukrai kraine Ignativske ✓ Elyzavetivske ✓ Rudenkivske 2 Processing Facilities 18.6 0.9 4.0 15 29 457 ✓ Novomykolaivske 1 LPG Plant ✓ Movchanivske ✓ Zaplavska Russia ✓ Koshekhablskoye 1 Gas Processing 36.1 0.1 6.1 43 80 108 ✓ Hung ngar ary 6 Licenses 1 Gas Processing - - - - - 1 ✓ Slovakia 3 Licenses (25% WI) - - - - - - Total al 54 54.7 1. 1.0 10.1 10 58 58 109 109 565 565 • Ukra krain ine: large-scale field development opportunity • Ru Russ ssia ia: Stable cash-generating operations • Hungary/Slo lovakia ia: Significant exploration potential • Team eam: : New board and executive management focused on modern development approach 3 *Source: Company data, Reserves and Contingent Resources are DeGolyer and MacNaughton estimates as of 31 December 2016

JKX Value Growth Potential One external view on valuation of JKX Com omparing JKX pote otentia ial l to o curr current valu aluatio ion: 450 400 350 300 250 $Mln $M 200 Hungary 150 Russia 100 50 Ukraine 0 Base Case Rud Base Net tax G&A Net debt Rud Upside Russia Upside Unrisked NAV Current mkt liability cap Com omparing JKX to o its peers: EV EV Production $/ $/Flo lowing Barrel EV/2 V/2P+2C ($m) (kboe/d) (k$/kboe/d) ($/boe) Eland Oil and Gas Nigeria 2.5 96.3 22.0 2.1 Exillon Energy Russia 13.7 198.8 16.8 0.4 Gulf Keystone Kurdistan 33.0 317.5 9.1 0.6 Petroneft Russia 1.4 27.5 16.2 0.5 Roxi Petroleum Kazakhstan 1.0 120.9 67.2 2.8 Urals Energy Russia 2.1 28.1 12.1 0.6 JKX KX Oi Oil l & & Gas as Ukraine/Russia 10.0 45.8 4.1 4. 0.1 0. Average Av Average Av 23. 23.9 1.2 1. Source: Stockdale Securities; Company research 4

Progress & Priorities Progress provides launch pad for growth 2016 Progress • Completed detailed field development plans (FDPs) for all core assets, identified growth opportunities, 1 and started their implementation • 2 Increased production with minimum capital expenditure • 3 Reduced operating costs and overheads, resulting in an increase in cash flow and profitability • 4 Eliminated short-term financial liabilities (bond repurchase and restructuring) • Completed international arbitration procedure, while actively engaging in dialogue with the Government 5 of Ukraine. 6 • Built a technical team 2017 Priorities Russia: Maintain base Hungary/Slovakia: Resolve legal issues Ukraine: Execute and consider strategic Appraisal and with Ukraine development plan monetization Exploration 5

Progress to date Our strategy works – next step is to scale it Key Financials • Eff Effic icie iency of of Ope Operatio ions: In 2016 we increased year- Change ($m) 2015 2016 on-year group production by 12%, reduced operating % and administration costs by $5.4 million. Despite 30% Production, boepd 8,996 10,083 12.1 decline in natural gas prices, operating cash flow (ex legal, professional, and restructuring fees) increased Natural gas price 4.20 2.95 (29.8) ($ per Mcf) 67% to $30 million in 2016 vs $18 million in 2015. Oil price 49.75 45.94 (7.7) • Compelli ling CAP APEX ef efficie iency cy: About 20 enhancement ($ per bbl) projects completed in Ukraine and Hungary from Group revenue 88.5 73.8 (16.6) beginning of 2016 to date added ~1,200 boepd to our EBITDA* 16.9 15.8 (6.5) production as of April 2017. $2.8 million spent on completed enhancements has not only paid back Cash from operations 12.8 17.0 32.8 already, but also generated estimated pre-tax Adjusted cash from cumulative free cash flow of $7.3 million by April 2017 18.0 30.0 66.7 operations** and expected to generate a total of $15 million – more than five times the initial investment. Capital expenditure 6.2 7.5 19.4 Total debt 34.4 16.8 (51.5) • Su Succ ccessful Deb ebt res restructuring: In 2016 we eliminated short-term financial liabilities by achieving a Total cash 26.3 14.3 (45.6) successful bond restructuring and repurchasing bonds. Bond repurchases generated additional cost savings of $2.6 million and return of 83% for the Company assuming the bonds were put in February 2017 ($5.7 million and 29%, respectively, if bonds were held until maturity in February 2020) * before exceptional items 6 **before legal/professional/restructuring costs

Impact of enhancement program in Ukraine Well enhancement program stabilizes production while reducing CAPEX We implemented an enhancement program in the beginning of 2016 which helped to decrease the natural decline rate of production at our Novo-Nik complex of fields from estimated 20%+ per year to 0%. Novo Nik Complex - average BOE/d Novo Nik Complex - average BOE/d Capex (Thousand USD) Capex (Thousand USD) Average BOE to February 2016 Average BOE from March 2016 10,000 8,000 7,000 IG135 IG135 6,000 New management Average BOE (boe/d) Average BOE (boe/d) Capex (Thousand USD) Capex (Thousand USD) 5,000 average capex spend M166X M166X $522K per month for Drilling Drilling ~0% decline/year Real field decline Real field decline stopped stopped ~ 66%/year ~ 66%/year 4,000 Old management average capex spend $1098K per month for 3,000 ~24% decline/year IG106 WO & M153 Perfs IG106 WO & M153 Perfs Enhancement program Enhancement program 2,000 1,000 1,000 0 Jan 12 Mar 12 May 12 Jul 12 Sep 12 Nov 12 Jan 13 Mar 13 May 13 Jul 13 Sep 13 Nov 13 Jan 14 Mar 14 May 14 Jul 14 Sep 14 Nov 14 Jan 15 Mar 15 May 15 Jul 15 Sep 15 Nov 15 Jan 16 Mar 16 May 16 Jul 16 Sep 16 Nov 16 Jan 17 Mar 17 7