Drilling Update

13 February 2012

Jubilant Energy NV

("Jubilant" or "the Company")

Jubilant spuds the North Atharamura-1 Exploration well in the northern part of the Tripura Block

Jubilant is pleased to announce that the North Atharamura-1 well was spudded on 12 February in the Tripura block. This is the second exploratory well to be drilled under Exploration Phase-II and the first well of Phase-II to be drilled on the Atharamura anticline. The well is located 6.7 kilometers south-west and up-dip from the Phase-I exploratory well Ambasa North.

The North Atharamura-1 will be a vertical well, targeted to a total depth of 4,000 metres Measured Depth ("MD") and is estimated to take approximately three to four months to drill.

The North Atharamura-1 well is designed to explore the hydrocarbon potential of supra-thrust Middle Bhuban and Lower Bhuban sands and sub-thrust Lower Bhuban, Renji and Jenam sands. This will be the first exploratory well in the Block targeting deeper objectives beyond the Middle Bhuban in the Atharamura anticline.

The first exploration well under Phase-II, Matabari-1, was spudded on 25 May 2012.This well was drilled to a depth of 3,287 metres MD compared to a planned target depth of 4,070 metres MD. Due to well control issues, the well was terminated with 19.7 pounds per gallon mud and plugged with cement at 2,588 metres set across 13-3/8" shoe. Based on mud log and petrophysical interpretations, three gas bearing sand intervals of interest have been identified in the Middle Bhuban formation in this well, totalling approximately 20 metres gross thickness. Sand-1 is the firm zone proposed in the interval 2,571.5-2,578 metres, Sand-2 in the interval 2,393-2,398 metres and Sand-3 in the intervals 2,326-2330 metres and 2,332.5-2,337 metres. A mini-Drill Stem Test performed in the Middle Bhuban, Sand-1 sand tested gas and the Absolute Open Flow Potential (AOFP) of Sand-1 has been calculated to be at the rate of 4.2 MMscfd. 

Jubilant holds a 20% participating interest in this block through its subsidiary Jubilant Oil & Gas Private Limited, India which is also the Operator for the block. GAIL India Limited holds the remaining 80% participating interest.

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 Competent Person's - Consent for Release

Mr Ramesh Bhatia, Chief Operating Officer, holds a Master's of Science degree in Applied Petroleum Geology and has over 20 years of experience in the Oil and Gas Exploration, Development 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.