UK-based oil and gas field developer JKX Oil & Gas has completed the acquisition of the southern Russian Koshekhablskoye gas field.

The acquisition was executed through wholly owned subsidiaries of JKX acquiring 100% of the field’s licensee, Yuzhgazenergie.

An initial $40 million of the total cash consideration of $50 million has been paid to the seller, Mostotal Investments, subject to an adjustment for working capital and indebtedness.

The balance of $10 million is payable in two blocks of $8 million and $2 million, respectively, and is scheduled for payment before the end of 2009, provided that a number of further conditions are satisfied. JKX is funding the transaction from its existing cash resources.

Miller and Lents, an independent oil and gas consultant engaged by JKX, has estimated that the remaining proven gas reserves in the field are 114 billion cubic feet (bcf) and proven plus probable gas reserves are 216bcf.