Drilling Update

22 August 2011

Jubilant Energy N.V.

("Jubilant" or "the Company")

Spud of second development well of Phase-III drilling campaign comprising of seven wells in the Kharsang Field

Jubilant is pleased to announce that KPL-C, the second of the seven development wells of the Phase-III drilling campaign in the Kharsang Field, Arunachal Pradesh was spudded on 22 August 2011.

The first development well KSG#57 (previously referred to as KPL-A), which was spudded on 28 July 2011, has been successfully drilled within budget and time by 15 August 2011. Based on the Wireline log interpretation results, formation pressure data from Sequential Formation Testing and Side Wall Core results, the consortium has identified four separate intervals totalling to 20 metres of net sand for testing. The well KSG#57 will be tested with the smaller capacity work-over rig which was deployed at the site on 21 August 2011. The testing results are expected within 7 to 10 days from the start of the testing.

KPL-C, the second development well is located in the eastern area of the field and is a step out location to target the shallow C-50, D-00 and also deeper Girujan reservoirs. The well will target structurally higher bright amplitude prospects identified by Seismic in this eastern part of the field. The well will be deviated by approximately 712 metres to the ESE direction from the existing plinth of well KSG-39 and a target depth of around 1224 metres True Vertical Depth ("TVD") with the option of continuing to 1598 metres TVD if appropriate. The well is expected to take four weeks to drill and the estimated cost is approximately USD 2.3 million (USD 0.57 million net to Jubilant).

GeoEnpro Petroleum Ltd., a joint venture of GeoPetrol and Jubilant Enpro (a member of the wider Jubilant Bhartia Group), is the operator of the Kharsang Field. Jubilant holds a 25% interest in the block through its subsidiary, Jubilant Energy (Kharsang) Pvt Ltd. The other members of the consortium are Oil India Ltd and GeoPetrol.

For further information, please contact:

Competent Person's consent for Release-

Maxwell Birley, BSc in Geological Geophysics, the Company's Chief Operating Officer, has 30 years of international experience in the 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.