Commencement of drilling

4 January 2011

Jubilant Energy N.V.

("Jubilant" or the "Company")

Appraisal well spudded in Deen Dayal East area of Krishna Godavari Block (KG-OSN-2001/3)

Jubilant is pleased to announce that the appraisal well DDE-APP-1, located in 101 meters of water, was spudded on Saturday, 1 January 2011 by the Deep Driller-1 rig from Aban Offshore Limited.

This is the second appraisal well in the Deen Dayal East ("DDE") area of the KG-OSN-2001/3 block. The target depth of the well is 4750 meters true vertical depth with the objective of appraising the hydrocarbon bearing sands of KG-16 discovery well.

This is the seventeenth well to be drilled by the consortium in the block. The last 12 of the wells drilled all tested gas and condensate. Of these wells, four were drilled in Deen Dayal West, two in Deen Dayal East (including one appraisal well), two in Deen Dayal North, two in Deen Dayal North East-BRU and two in Deen Dayal Downthrown.

Jubilant holds a 10% participating interest in this block through its subsidiary Jubilant Offshore Drilling Private Limited in India. Gujarat State Petroleum Corporation Limited, with an 80% participating interest, is the Operator for the block.

Max Birley, BSc in Geological Geophysics, the Company's Chief Operating Officer, has 29 years' experience in the international exploration and production industry. He has reviewed and approved the technical information contained in this announcement pursuant to the AIM guidance note for mining and oil and gas companies.

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