Drilling Update

6 October, 2011

Jubilant Energy N.V.

("Jubilant" or "the Company")

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

Jubilant is pleased to announce that KPL-G, the third of the seven development wells of the Phase-III drilling campaign in the Kharsang Field, Arunachal Pradesh was spudded on 5th October 2011.

KPL-G, the third development well is located in the western area of the field, near the KSG-40 well which is currently producing at 125 bopd. KPL-G is a substitute development well targeting the shallow hydrocarbon-bearing sands encountered in the KSG-40 well. The well will be deviated to the south by approximately 177 meters from the existing plinth of well KSG-32 with a target depth of around 1450 meters True Vertical Depth ("TVD"). Extensive Coring is planned in this well with an objective of building a robust geological and reservoir model.

The well is expected to take approximately eight weeks to drill at an estimated cost of approximately USD 2.4 million (USD 0.6 million net to Jubilant).

The second development well KSG#58 (previously referred to as KPL-C), which was spudded on 22nd August 2011, has been successfully drilled up to a target depth of 1779 meters Measured Depth / 1602 meters TVD and was completed as planned on 27 September 2011. Based on the wireline log interpretation results, Side Wall Core results and formation pressure data from Sequential Formation Testing and Reservoir Dynamic Testing, the consortium has identified multiple intervals totaling 51.4 meters of net sand for testing. The well KSG#58 will be tested with the smaller capacity work-over rig which was deployed at the site on 2 October 2011, with results expected to take approximately five weeks from the start of the testing on 4 October 2011.

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.

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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