Extension of contract area

23 January 2012

Jubilant Energy NV

("Jubilant" or "the Company")

Government Approval Received for Extension of Contract Area in Krishna Godavari Block

Jubilant is pleased to announce that the Ministry of Petroleum and Natural Gas of the Government of India ("MoPNG"), has approved an extension of 20.5 square kilometres to the existing contract for the Krishna Godavari Block (KG-OSN-2001/3).

As previously announced by the Company on 27 April 2011, the Management Committee for the block had recommended granting of the extension. The extension area's coordinates are as follows:-

The Field Development Plan for the DeenDayal West area ("DDW") in the Krishna Godavari block, which includes wells KG-8, KG-15, KG-17 and KG-28, was approved by the Government of India in November 2009. As previously announced by Jubilant, management believe that the hydrocarbon plays encountered in discovery wells KG-8 and KG-15 extend towards the South/SouthWest of the original block boundary, these areas are now covered by the extension to the block. As a result of the extension, the approved development area for DDW has increased from 17 square kilometres to a total of 37.5 square kilometres.

The Company plans to get the reserves and resources of the extension area certified by the technically competent authority which will be announced to the market.

Jubilant holds a 10% participating interest in this block through its subsidiary Jubilant Offshore Drilling Private Limited in India. Gujarat State Petroleum Corporation Limited, with an 80% participating interest, is the Operator of the block.

A copy of this announcement, including co-ordinates and the map showing the extended area, shall shortly be made available on the Company's website, www.jubilantenergy.com.

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.