Drilling Update

12 December 2011

Jubilant Energy NV

("Jubilant" or "the Company")

Spud of fourth Phase-III development well in oil producing Kharsang field  

Jubilant is pleased to announce that KPL-H, the fourth of the seven development wells of the Phase-III drilling campaign in oil producing Kharsang field, Arunachal Pradesh was spudded on 9 December 2011.

KPL-H, locatedin the north-western area of the field to the west of KSG#22, is being drilled with a primary objective of appraising the shallow C-50 and D-00 oil reservoir sands together with a secondary objective of appraising the G-00, G-60 and H-00 oil sand layers. The well will be deviated by approximately 274 metres to the west from the existing plinth of well KSG#22 and drilled to a target depth of approximately 1,010 metres True Vertical Depth ("TVD").

The well is expected to take about four weeks to drill and the estimated cost is approximately USD 2.28 million (USD 0.57 million net to Jubilant).

The third development well, KSG#60 (previously referred to as KPL-G), which was spud on 5 October 2011, has been successfully drilled to a target depth of 1,470 metres Measured Depth ("MD") (1,432 metres TVD) and was completed on 27 November 2011. Extensive coring has been carried out in this well with an objective of building robust geological and reservoir models. Based on the results of the wireline log interpretation, drill cutting and coring operations, and formation pressure data from the Reservoir Dynamic Tester, a number of sands have been encountered in the well in line with expectations. The company will be testing the sands and expects to put the first zone on production within 3 to 4 weeks. A further release will follow regarding the actual tested rates. The KSG#60 well will be tested with the smaller capacity work-over rig which was, mobilised to the site on 2 December 2011. The testing is expected to take approximately three weeks.

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 per cent. 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:

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.