In 2007 JKX acquired Yuzhgazenergie (YGE). YGE holds the licence to redevelop the 34.7sq.km Koshekhablskoye gas field, located in the Republic of Adygea in southern Russia.  A detailed technical and environmental evaluation by JKX concluded that the existing production facility should be completely replaced as it could not meet the new gas specification required for entry to the Gazprom transit system, nor the enviornmental standard for emissions.  The development programme is underway, consisting of the design and sourcing of replacement processing facilities, including a sour gas treatment plant, testing of existing wellheads and flowlines and the mobilization of a drilling rig to initiate workover on existing wells.  During 2008 3D seismic survey was completed on the licence and surrounding areas.

Summary of Russia reserves