JKX to Upgrade PPC Gas Processing Facilities

JKX says that following commencement in early June of production from Well M202, PPC's gas processing facilities are operating at nominal capacity of 35 million cubic feet per day. The Company plans to increase this nominal capacity by the installation of additional equipment in the second quarter of 2004.

The Company plans to initiate the drilling of two development wells on the Molchanovskoye field in the Ukraine during the fourth quarter of 2003 and lay additional flowlines. Additional study work is underway on PPC's other license areas at Poltava.

The Board of JKX believes that the upgrade of the gas processing facilities and the development drilling program will allow an increase in production and revenues in the medium term.