In 2007 JKX acquired Yuzhgazenergie (YGE). YGE holds the licence to redevelop the 32.7sq.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 new gas plant facility is being commissioned with production due to commence in Autumn 2011.  The aim is to have three wells in production at start-up with further wells being brought on steam in the second phase in 2012.

Summary of Russia reserves