Drilling Update

 1 June 2012

Jubilant Energy NV

("Jubilant" or "the Company")

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

Jubilant is pleased to announce that KPL-B, the final well of the seven well Phase-III development drilling campaign in the oil producing Kharsang Field, Arunachal Pradesh was spudded on 31 May 2012.

KPL-B, located in the southern area of the field to the south-west of well KSG#55 and north-west of KSG#62, is being drilled with a primary objective of appraising the S-00 reservoir sands and a secondary objective of appraising the M-00 and T-00 sand layers. The well will be deviated by approximately 686 metres to the south from the existing plinth of well KSG#40 and will be drilled to a target depth of approximately 1,400 metres True Vertical Depth ("TVD"). The well is expected to take up to five weeks to drill.

The sixth development well, KSG#63 (previously referred to as KPL-E) was planned to be drilled to a depth of 1,522 metres Measured Depth ("MD")/ 1,400 metres TVD, but due to well complications, it had to be sidetracked twice after drilling to a depth of 956 metres MD and 1,517 metres MD, respectively. The well was completed on 13 May 2012 at a depth of 1,128 metres MD (1,048 metres TVD). Based on the results of the wireline log interpretation and mud log shows, the primary objective of the M-00 sands have been encountered in the well and were in line with expectations. The KSG#63 well will be tested with the smaller capacity work-over rig, which is expected to be mobilized soon. 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 percent interest in block through its subsidiary, Jubilant Energy (Kharsang) Pvt. Ltd. The other members of the consortium are Oil India Ltd. and GeoPetrol.

Competent Person's - Consent for Release

Mr Ramesh Bhatia - Vice President (Exploration), 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.