YGE to Install and Operate the First LO-CAT® Unit in Russia

Schaumburg, IL — Redevelopment of the Koshekhablskoye gas field in the Russian Republic of Adygea has resulted in the license of the first LO-CAT® unit in Russia to YGE (Yuzhgazenergie). The selection of a 4.07 Metric Ton/Day LO-CAT Hydrogen Sulfide Treatment System from Gas Technology Products division of Merichem Chemicals & Refinery Services LLC will be integrated into the overall facility with a proposed start-up date in the 4th Quarter 2010.

The existing production facility will be replaced with new gas processing facilities (including the LO-CAT sulfur removal unit) at the current location near the city of Maikop. This facility will provide gas that meets the new specifications required for entry to the Gazprom transit system, along with meeting current environmental standards

The LO-CAT System is designed to directly treat the high-pressure gas and provide a sweet gas stream with < 4ppm H2S content. Up to 29,550 SCFM of gas can be treated, producing just over 4 Metric tons/day of sulfur with greater than 99.8% removal.

YGE is a wholly-owned entity of JKX Oil & Gas plc. JKX Oil & Gas plc is a FTSE 250 exploration and production company with principal operations in Russia and Ukraine. Additional license interests are in Georgia, Bulgaria, Hungary, Slovakia and the USA. For more information about this project at JKX Oil & Gas plc, contact Mark Kingsley at 011-44-7545-203-806 or Mark.Kingsley@jkx.co.uk.

The Gas Technology Products division of Merichem Chemicals & Refinery Services LLC, has more than 30 years of H2S removal experience and offers a complete portfolio of H2S removal processes, systems and products to fit a wide range of applications. Additional information is available at www.merichem.com/gtp.

Merichem Chemicals & Refinery Services LLC, a wholly owned subsidiary of Merichem Company, is a provider of process technologies and related engineering and process equipment to remove sulfur and other impurities from hydrocarbon liquids and gases in the downstream and upstream energy sectors. Merichem has over 900 technology licensees worldwide. For over 60 years, Merichem has provided hydrocarbon treating solutions and by-product management for the global refining and petrochemical industries. For more information on Merichem or the products offered, visit www.merichem.com or call 713-428-5000.

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