Drilling Update

16 January 2012

Jubilant Energy NV

("Jubilant" or "the Company")

Spudding of fifth well of Phase-III development campaign in Kharsang Oil Field

Jubilant is pleased to announce that KPL-F, the fifth of the seven development wells of the Phase-III drilling campaign in the oil producing Kharsang Field; Arunachal Pradesh was spudded on 13 January 2012.

KPL-F, located in the southern area of the field to the south of well KSG#55, is being drilled with the primary objective of appraising the lower S-00 reservoir oil bearing sands together with a secondary objective of appraising the Q-00 and T-00 sand layers. The well will be deviated by approximately 522 metres to the south from the existing plinth of well KSG#48 and drilled to a target depth of approximately 1,480 metres True Vertical Depth ("TVD").

The well is expected to take between four to five weeks to drill and the estimated cost is approximately USD 2 million (USD 0.5 million net to Jubilant).

The fourth development well, KSG#61 (previously referred to as KPL-H), which was spud on 9 December 2011, was successfully drilled to a depth of 1,127 metres Measured Depth ("MD") (1,066 metres TVD) on 5 January 2012. Based on the results of the wireline log interpretation, drill cutting, and formation pressure data from the Reservoir Dynamic Tester, a number of sands have been encountered in the well in line with previous expectations. The Company will be flow testing the sands and, if successful, expects to put the first zone on production within 3-4 weeks. A further release will follow regarding the actual tested rates. The KSG#61 well is being tested with the smaller capacity work-over rig which was mobilised to the site on 11 January 2012.

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

Enquiries:

Jubilant Energy Ajay Khandelwal, Vipul Agarwal +91 120 4025700

Evolution Securities Neil Elliot +44 20 7071 4300

Deutsche Bank Rajat Katyal, Drew Price +44 20 7547 8000

College Hill Nick Elwes, Alexandra Roper +44 20 7457 2020

Competent Person's - Consent for Release

Maxwell Birley, BSc in Geological Geophysics, the Company's Chief Operation 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.