Final Results

26June 2014

Jubilant Energy NV

("Jubilant" or "the Company")

Results for the year ended 31March 2014

Jubilant Energy N.V, an upstream oil and gas company with assets in major proven and prolific hydrocarbon basins, primarily in India and Myanmar, is pleased to announce its results for the year ended 31 March 2014.

HIGHLIGHTS

Significant Milestones

· Significant progress has been made in the KG offshore block. Development of the Deen Dayal West Field in KG Deen Dayal block is now progressing towards delivering first commercial gas by Q2 FY 2014-15. All the offshore and onshore facilities along with sub-sea pipeline are mechanically completed and offshore facilities (WHP & PLQP) are pre-commissioned. Going forward, the Consortium has also recognized the importance of production optimization and has contracted an independent consultancy firm of international repute to evaluate and project manage fraccing of development wells and achieving well path optimization.

· Commerciality of the six new discoveries for the areas (DDE, DDN, DDWDT and DDNE-BRU) other than DDW & DDW-Extension in KG Block declared in January 2014 backed by review of Management Committee which accorded Best Estimate GIIP of 8.392 TCF. Integrated Field Development Plan (FDP) to develop these areas is under preparation and is targeted to be submitted by December 2014 to the Government for approval.

· The Company has declared two gas discoveries in exploration well North Atharamura-1 (NA-1) in northern part of the Tripura block as of commercial interest in FY 2013-14, of which one is at a significantly shallow depth of 600-700 meters and the other relatively deeper in Bhuban reservoir.

· Management Estimate of Best Case GIIP in North Atharamura shallow Bhuban Reservoir is 341 BCF with 2C of 239 BCF while in deeper Bhuban reservoir Best Case GIIP and 2C Resources are 363 BCF and 145 BCF respectively.

· Company to appraise discoveries in the next two years for which the appraisal plan has been submitted to DGH for approval.

· Commerciality of the Kathalchari Middle Bhuban discovery in the southern part of Tripura block was declared in January 2014 backed by review of Management Committee which accorded Best Estimate GIIP of 1,212 BCF. It is targeted to submit Field Development Plan for the Kathalchari discovery by end of year 2014 to the Government for approval.

· In the Sanand Miroli block, intermittently test production has started in Part-B (Miroli) since November 2013. The well SE-3 and SE-4 from SE-4 cluster in Part A (Sanand) tested oil from Kalol formation at the rate of 180-200 BOPD in September 2013. Revised Field Development Plan including the Kalol discovery will be submitted shortly, approval of which will not only mature significant amount of resources to reserves but regular production will also start once the facilities are in place. Currently, transient test production is being carried out from the two Kalol discovery wells and post financial year 2013-14 more than 4,000 bopd of gross test production has been produced in one month from the two wells.

· The Company has successfully completed the 6 well Phase III Extension development drilling campaign in Kharsang. The drilling campaign initiated last fiscal year was completed this year with successful testing of the wells and placing the wells on production in FY 2013-14. These successful testing were announced over the period under review. These wells have contributed significantly to Kharsang production. The only well which did not produce crude oil, tested natural gas and is kept closed for future development.

Production

· 654,166 barrels gross oil (163,542 barrels net to Jubilant) were produced from Kharsang field during the reporting period, including incremental production from the new Phase III Extension development drilling wells, as against 718,026 barrels gross oil production (179,507 barrels net to Jubilant) in FY 2012-13.

· Intermittently test Crude Oil production commenced in November 2013 from the Miroli area (Part B) of Sanand-Miroli Block. Total gross production during the reporting period stood at 969 barrels (194 barrels, net to Jubilant).

· Extended transient testing from Sanand area (Part A) SE-3 and SE-4 wells from Kalol reservoir discovery commenced in beginning of FY 2014-15. Regular production is expected to commence by H2 FY 2014-15, post approval of Revised Field Development Plan (RFDP) and facilities being in place by such time. As of now more than 4000 bopd of gross test production has been produced in one month from the two wells.

· First gas at the Deen Dayal West (DDW) field in the KG offshore block is expected in Q2 FY 2014-15.

Operations

· Seismic processing and interpretation of 125 LKM 2D data on the Atharamura anticline in the northern part of Tripura block was completed. Drilling of exploratory well North Atharamura-1 was also completed in the block with testing carried out at two levels.

· Appraisal plan to appraise the North Atharamura discovery submitted to DGH for approval.

· High quality 3D seismic data was successfully acquired and processed in the Kharsang field, depth processing and interpretation of which is currently in progress through competent third party consultants. 

· Phase III Extension drilling campaign was successfully completed at Kharsang with all wells except one producing crude oil. The only well which didn't produce crude oil tested natural gas and is being kept closed for future development.

· Successful mechanical completion of all the offshore (WHP & PLQP) and onshore (OGT) development facilities at Deen Dayal West (DDW) field in KG block was achieved. Commissioning of the facilities is expected soon, followed by commencement of production by Q2 FY 2014-15.

· Successful testing achieved in two wells SE-3 and SE-4 at Kalol level in the southern part of Part A of Sanand-Miroli block, each producing more than 100 BOPD during testing.

Financial

· Achieved a gross sales volume of 642,607 barrels of oil during the year (Net to Jubilant 160,652 barrels of oil), lower by ~8% from previous year.

· Operating revenues at USD 15.8 million on net entitlement interest basis, lower by ~11% from previous year due to lower production, sales and lower oil price. 

· Average oil price realised USD 109.24 per barrel (Previous Year USD 112.5 per barrel).

· Capital expenditure of over USD 53 million during the year, compared to USD 90 million in the previous financial year.

· Profit from operating activities: USD 8.2 million as against USD 6.9 million in previous year, higher by 19%.

· During the year, the Company raised loan of USD 15 million from Axis Bank, Singapore and raised additional USD 90 million unsecured loan from Jubilant Bhartia Group companies for Company´s operations and debt repayments and servicing.

· Outstanding debt of USD 487 million, including USD 123 million from Jubilant Bhartia Group companies, as on 31 March 2014. Undrawn facilities of USD 32.6 million and cash balance of USD 25.7 million available to the Company. Company is exploring other avenues to raise additional capital.

Outlook

· Expected production from KG DD-West field will be Company's first commercial gas production.

· Submit Field Development Plan for the six discoveries in KG Block, which when approved will mature significant amount of Contingent Resources to 2P Reserves.

· Increase the productivity per well through hydrofraccing in future DDW development wells through the integrated project management firm.

· Submit Field Development Plan for Kathalchari discovery in Tripura Block by end 2014, approval of which will move significant Contingent Resources to 2P Reserves category. Objective is to fast track production of first gas from the Kathalchari discovery.

· Appraise the North Atharamura-1 well discovery over the next two years with objective to submit the Declaration of Commerciality in May, 2016.

· New high quality 3D seismic data in Kharsang will open up new in-fill, step-out development wells drilling to increase the production and drilling of untested deeper prospects of different stratigraphic levels like lower part of Girujan, Tipam and Barail.

· The recent commencement of oil production from the Miroli area and expected regular production from Sanand area of block CB-ONN-2002/3 will be incremental to the Company's net oil production in the coming days.

· Jubilant is funded to carry out its anticipated work programme in the coming year with available cash, undrawn facilities and funding support from the Promoters up to December 2015.

Mr. Shyam Bhartia, Chairman and Mr. Hari Bhartia, Co-Chairman of Jubilant Group commented:

"Throughout the period under review we have continued to focus on our key assets. In terms of production, the Company continues to work closely with the Operator to enhance production at the Kharsang field. Meanwhile, the KG basin continues to be our most significant asset, with first gas expected in Q2 2014-15. The upside development potential of the block has been further enhanced by the recent approval by DGH of the Declaration of Commerciality, covering all the other six discoveries in the block. In addition, the new gas tariff due to be announced by the Government of India is expected to contribute significantly to the value of the DDW gas.

Our exploration programme is also continuing in parallel. We are excited about the recent gas discoveries at the Tripura block and we are currently developing a strategy to fast track first gas at the Kathalchari discovery. In addition, an appraisal program at the North Atharamura discovery was finalized and submitted to DGH. The commencement of oil production from the Sanand-Miroli Block will also have an incremental impact on the Company's net production.

We look forward to further value creation and cost optimisation initiatives in 2014-15, and we will update the market further over the course of the year."

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.

Notes and Glossary of abbreviations

The reserve and resource figures disclosed in this announcement have been estimated using the Petroleum Resources Management System published by the Society of Petroleum Engineers/ World Petroleum Council American Association of Petroleum Geologists/ Society of Petroleum Evaluation Engineers (SPE/WPC/AAPG/SPEE) in March 2007 ("SPEPRMS").

Background Information

Jubilant Energy N.V. (the "Company" or "Jubilant") is an AIM listed, independent energy company incorporated under the laws of Netherlands. The Company is engaged in upstream E&P activities since 1995 and has a diversified and balanced portfolio of oil and gas assets in proven petroliferous basins comprising of seven key blocks in various stages of Exploration, Development and Production of which six blocks are in India and one is in Myanmar.

Out of these seven key blocks, two blocks, the Kharsang Field and the Sanand Miroli Block are producing oil fields. Kharsang field has been on commercial production since 1995, while two wells from Miroli area (Part B of block CB-ONN-2002/3) of the Sanand-Miroli block were put on test production with intermittent flow and sales realization accounted under cost instead of revenue during the period under review. Apart from the above blocks containing producing oil fields, the Company is currently participating in development of gas fields in two blocks, Deen Dayal West (DDW) gas field in Block KG-OSN-2001/3 in KG offshore basin where the development activities are nearing completion and expected to be on production by Q2 FY 2014-15 and two discoveries in the block AA-ONN-2002/1 located in Tripura in the proven and prolific Cachar-Tripura-Bangladesh (CTB) basin at pre-development and appraisal stage.

In addition to the above producing and development blocks, the Company also has two exploration blocks, AA-ONN-2009/1 and AA-ONN-2009/2, in the state of Manipur, located in unexplored part of the proven Assam-Arakan Basin, wherein progress post initial seismic is impeded on account of poor infra-structure and logistic issues. In the Golaghat block in Assam, Forest Diversion approvals are awaited. Apart from these blocks in India, the Company entered into a Production Sharing Contract with MOGE (Myanmar Oil & Gas Enterprise) and acquired PEL in PSC-I block of Myanmar in August 2012. The block is presently under exploration.

Currently, the Company has on a working interest basis 2P Reserves, of 33.61 MMboe, and 2C Contingent Resources, of 162.9 MMboe supported by significant Best Estimate Unrisked Prospective Resources. The Company's 2P reserves are set to increase substantially in the future, once 2C resources are backed by necessary FDP submissions and approvals.

Through focused and efficient appraisal and development, the Company seeks to monetize its reserves and convert its resources to reserves. The Company's current focus is aimed at monetization of the reserves by actively pursuing all production enhancement, development and pre-development activities.

Business Review

A summary on progress in key assets is as below:

Production and near term production upside - Kharsang Field (WI - 25%)

Jubilant holds a 25% working interest in the block operated by GeoEnpro Petroleum Ltd. The block is located in the prolific Upper Assam basin in North East Region of India. As of date, 37 wells are on production including 5 wells which formed part of the 6 well Phase-III Extension drilling campaign executed during the period under review. Total crude oil production for the year stood at 654,166 barrels (163542 barrels net to Jubilant) which is ~9% lower compared to production in FY 2012-13.

The production from the field increased significantly in the first half of the year following successful execution of Phase-III Extension drilling program, but, there was decline in production in the second half of the year because of complexities including wax inhibition, sand ingression, high water cut and high Gas Oil Ratio in some of the wells. The Operator has initiated well servicing in these wells and has also chalked out definitive plan to overcome these complexities in near future through new technologies and pilot projects.

In line with the Company's strategy to maximize the potential of its producing assets, Phase IV drilling campaign along with work over activities, gas lift project and other enhanced oil recovery activities will be committed in this fiscal year to arrest decline in production and increase production from the field.

A high quality 3D seismic survey and its processing over the field has been completed with a view to understanding full potential of the Block. Depth processing and interpretation of the new 3D data is in progress through a competent independent consultant. Results of the interpretation will be useful in identifying new infill and step-out drilling locations in existing producing reservoirs and will add to understanding of deeper prospects within the block such as the Lower Girujan, Tipam & Barail formations. Apart from the producing reservoirs, the JV Consortium in Kharsang estimates a significant resource potential in Lower Girujan & Tipam reservoirs.

Reserves and Resource estimation as at September 2013 is being prepared by Gaffney, Cline & Associates ("GCA") and the final report is in the process of finalization. The Company is hopeful of increase in estimates of contingent resources.

Development, Production and Near Term Production Upside-Sanand-Miroli Block (WI - 20%)

Jubilant holds a 20% working interest in the block operated by Gujarat State Petroleum Corporation Ltd. The Block is located in the prolific Cambay basin in western India. The year under review was a milestone year for this block as the test production of crude oil started from this block.

Intermittent test production from two wells in Part-B of the block (Miroli area) commenced in November 2013. Cumulative gross test production for the year under review from this block stood at 969 barrels (194 barrels, net to Jubilant) due to inconsistent crude lifting. But, this is a temporary issue and will be resolved once production from Part-A of the block (Sanand area) will start.

Two wells in the southern part of Part-A of the block, SE-3 & SE-4, have each flown at a rate of 180-200 bopd on testing within the Kalol formation, where previously only the underlying Intra-Cambay had tested oil. Revised Field Development Plan (RFDP) has been submitted to Management Committee, including the Kalol discovery for approval. The additional information/analysis requested by DGH on the subject matter is being carried out currently.

Extended transient testing from Sanand area (Part A) SE-3 and SE-4 Wells from Kalol reservoir discovery commenced in the beginning of FY 2014-15; regular production is expected to commence by H2 FY 2014-15 post approval of Revised Field Development Plan (RFDP) and the facilities being in place by that time. Post financial year 2013-14, more than 4000 bopd of gross test production has been produced in one month from the two wells.

The Company has also carried out in-house detail study to understand full hydrocarbon potential of this block and is confident that there are enough resources for production in this block which will boost Company's top line in near term.

Development & Appraisal - KG Deen Dayal Block (WI - 10%)

The Deen Dayal block in Krishna Godavari basin lies in the south-east coast of India where the Company has a 10% non-operating working interest.

Along with the Operator namely Gujarat State Petroleum Corporation Ltd. (GSPC), the Company actively participates in technical evaluation and project analysis in the block. Much awaited first gas production from the near completion development activities in the Deen Dayal West (DDW) field of the block is expected by Q2 FY 2014-15. Though there were slight delays and shifts in first gas target dates, there has been significant progress in the drilling and facility installation activities in the field during the period under review. All facilities, both onshore and offshore, are mechanically completed and offshore facilities PLQP & WHP are pre-commissioned. Wells D1 and D3 are completed and ready for production.

Given the tight gas reservoir and high pressure high temperature (HPHT) properties of the reservoir, the JV Consortium in the Block has now inducted an international independent consultant of high reputation to supervise integrated project management, plan and execute future drilling, testing and completion. Hydraulic fracturing or hydrofrac, a method globally recognized as a powerful tool for obtaining optimum production from tight reservoirs, will be implemented in some of the future development wells. The Consortium is optimistic of enhancing the well productivity by efficient execution of drilling and hydrofraccing of future wells.

Along with development of DDW field, other areas in the block are in appraisal stage. A significant milestone was achieved in the year under review. Proposal to declare 6 new discoveries as commercial in the areas (DDE, DDN, DDWDT and DDNE-BRU) other than DDW & DDW-Extension was reviewed by Management Committee in January 2014 with an estimated GIIP of 8.392 TCF and EUR of 1.015 TCF as a Phase I recoverable resources with 25 development wells. The Operator has prepared a long term phased resource maturation plan for the development of total available resources in the discovery area. As part of this phased development, the approved DOC considers recoverable gas of 1.015 TCF for initial development out of 2C recoverable gas resources of 4.708 TCF on gross basis. Integrated Field Development Plan (FDP) to develop these areas is under preparation and is expected to be submitted by December 2014. The development of these areas will be in phases and will be targeted towards exploiting 4.8 TCF of 2C resources as certified by GCA. Approval of FDP for these areas will take us closer to converting significant amount of 2C resources into 2P reserves.

The block also has significant prospective resources as previously certified by GCA vide its Report issued in August, 2012. A successful development of DDW will lead to a definitive roadmap to monetize rest of the contingent and prospective resources in the blocks leading to significant value creation.

Appraisal & Near Term Development - Tripura block (AA-ONN-2002/1) (WI - 20%)

The Company is an Operator in this block with GAIL (India) Limited as a consortium partner. A total of four discoveries have been made in the block till date, of which, the JV Consortium in the block is planning to develop a discovery in Kathalchari area in the southern part of the block and appraise a discovery in North Atharamura area in the northern part of the block.

Two significant milestones were achieved in this year under review. First, proposal to declare the Kathalchari discovery as commercial was reviewed by Management Committee with an estimated GIIP of 1.212 Tcf, as opposed to 1.078 Tcf proposed in the DOC by the Consortium, following which Commerciality of the Kathalchari discovery was declared. The JV consortium in the block is now in process of preparing and submitting a Field Development Plan by end 2014, targeting development of 129 BCF in phases.

Second, the Company notified new discoveries of commercial interest in Middle Bhuban and Lower Bhuban reservoirs in 2013 in the North Atharamura-1 well drilled in the Atharamura anticline. Gas discovery has been made in the North Atharamura-1 (NA-1) well within the intervals 610-635 meters within Middle Bhuban and 2175-2195 meters within Lower Bhuban.

The gross Middle Bhuban sand package in the 610-635 metres MD interval ("Object-II", perforated zone 610-625 metres) was perforated on 31 May 2013. Object-II flowed gas at a measured rate of 1.7 million standard cubic feet per day at 24/64" choke size. Details of the Discovery have been notified to MOP&NG/DGH and Management Committee on 31 May, 2013 by the submission of Format A. Format B to declare that the Discovery is of potential commercial interest was submitted on 4 July 2013.

The gross Lower Bhuban sand in the 2,175-2,195 metres interval ("Object-I", perforated zone 2185-2191 meters) was perforated on 25 May 2013. The gas rate was measured as 3,240-3,777 standard cubic feet per day and water rate as 445-918 barrels per day at 32/64" choke size. The details of the Discovery have been notified to MOP&NG/DGH and MC on 27 May, 2013 by the submission of Format A. Format B for Discovery in Lower Bhuban has been submitted on 29 July, 2013.

As at end FY 2013-14, Best Case Management estimate of GIIP for the North Atharamura Middle Bhuban Reservoir is 341 BCF with a 2C recoverable resources of 239 BCF. Best Case Management estimate of GIIP and 2C resources for the Lower Bhuban discovery are 363 BCF and 145 BCF respectively. Jubilant holds a 20% working interest in the licences.

The OC approved Appraisal Plan to appraise the North Atharamura discovery in next two years has been submitted to DGH for approval.

These developments further establish hydrocarbon potential of the block, thereby giving the confidence that significant gas reserves could support a gas monetisation strategy for the region.

Exploration Block - Manipur I (AA-ONN-2009/1, WI - 100%), Manipur II (AA-ONN-2009/2, WI -100%)

The Company pursued exploration activities in these exploration blocks with an objective of establishing leads and prospects.

The Company undertook Geological survey, sedimentological studies, Airborne Full Tensor Gradiometer survey and 2D seismic survey in both the blocks in Manipur. Five exploration well locations proposals were released and reviewed by DGH over both the blocks in Manipur. The Company is however unable to progress work beyond initial seismic on account of poor infrastructure, logistic and other environmental issues. The Company continues to believe that there is a long term gas play evidenced by GCA estimation of unrisked prospective resources of 7.09 TCF in Best Case in Manipur blocks reference its 2012 reserve-resource assessment of the block.

Exploration Block - Myanmar PSC-I block

The Company in the year 2012 acquired a block in Myanmar under the Myanmar Onshore Blocks Bidding Round in 2011. The Company is currently pursuing exploration activities in the block and has appointed a seismic contractor to undertake seismic acquisition in the block. In May 2014, Company has requested to Myanma Oil & Gas Enterprise (MOGE) for extension of 645 days to the Initial Exploration Period under the PSC in lieu of delays in approvals to start the seismic operations.

Financial Review

The gross sales volume during the year was 642,607 barrels and net to Jubilant 160,652 barrels from Kharsang field. In the previous year, gross sales volume was 699,310 and net to Jubilant was 174,828. There was a decline of ~8% in the current year. The production from the field increased significantly in the first half of the year following successful execution of Phase-III Extension drilling program, but there was decline in production in the second half of the year because of complexities including wax inhibition, sand ingression, high water cut and high Gas Oil Ratio in some of the wells. The Operator has initiated well servicing in these wells and has also introduced pilot projects to overcome these complexities in future.

The net operating revenue was at USD 15.8 million, lower by ~11% compared to previous year due to lower production, sales and oil realization. The average oil price realized was USD 109.24/Bbl and for the previous year it was USD 112.5/Bbl, a decrease of 2.9%.

During the year ended 31 March 2014, the Group incurred a loss of USD 8.5 million as compared to a loss of USD 9.7 million in the previous year. Loss before tax was USD 3.4 million, which was almost at the same level as in the previous year due to compensatory impact in revenues and cost.

Closing cash (including short term investments) was USD 25.7 million (March 2013: USD 22.6 million). During the year, the Company had cash inflows of USD 7.3 million (2013: inflows of USD 7.7 million) from operating activities and outflows of USD 36.1 million (2013: USD 65.5 million) from investing activities, which were mainly funded by additional loans, available cash and internal accruals. The inflows from operating activities were primarily on account of revenues from the producing Kharsang block. The outflows on investing activities encompass the investment in exploration and tangible assets totaling to USD 33 million.

During the year, the Company raised loan of USD 15 million from Axis Bank, Singapore and additional USD 90 million unsecured loan from Jubilant Bhartia Group companies for Company´s operations and debt repayments and servicing.

Total outstanding debt of USD 487 million, including debt of USD 123 million from Jubilant Bhartia Group companies, as on 31 March 2014. Undrawn facilities of USD 32.6 million and cash balance of USD 25.7 million available to the Company. Jubilant is fully funded to carry out its anticipated work programme with available cash, undrawn facilities and funding support from the Promoters up to December 2015. The Company is working on other options for raising further capital.

With these words, we would like to acknowledge efforts of the entire Jubilant Energy Team under guidance of our Board to enable us focus on near term value creation and risk mitigation objectives. We would also like to express our gratitude for the continuous support extended by all the partners, DGH and Ministry of Petroleum & Natural Gas

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity for the year ended 31 March 2014

Consolidated Statement of Changes in Equity for the year ended 31 March 2014

Notes to the accounts

1. General and principal activities

Jubilant Energy N.V. ('the Company' or 'JENV') was incorporated on 12 June 2007, in Amsterdam, the Netherlands, as a company with limited liability. The registered office of the Company is Orlyplein 10, Floor 24, 1043 DP Amsterdam, the Netherlands. The Company is a subsidiary of Jubilant Energy (Holding) B.V. (JEHBV), a Netherlands company, which in turn is a wholly-owned subsidiary of Jubilant Enpro Private Limited ('Jubilant Enpro'), a company incorporated under the laws of India. On 24 November 2010, the Company commenced trading on Alternative Investment Market (AIM), London.

The abbreviated consolidated financial information as at and for the year ended 31 March 2014 comprises the Company and its subsidiaries (together referred to as the 'Group' and individually as 'Group entity') and the Group's proportionate interest in jointly controlled assets in unincorporated joint ventures.

The Group is engaged in the exploration for and development and production of oil and natural gas. It conducts many of its activities jointly with others. The abbreviated consolidated financial information reflects only the Group's proportionate interest in such activities.

2. Summary of significant accounting policies

The abbreviated consolidated financial information has been derived from the Company's Consolidated Financial Statements for the year ended 31 March 2014 and the Company's Consolidated Financial Statements for the year ended 31 March 2013 which has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. These standards have been consistently applied throughout the Group and in previous year. The Company's Consolidated Financial Statements for the year ended 31 March 2014 and the Company's Consolidated Financial Statements for the year ended 31 March 2013 were authorised for issue by the Board of Directors on 25 June 2014 and on 26 June 2013 respectively.

Basis of preparation

The abbreviated consolidated financial information, which comprise the abbreviated statement of financial position as at 31 March 2014, the abbreviated statement of comprehensive income, statement of changes in equity and cash flow statement for the year then ended, and related notes, have been derived from the Company's Consolidated Financial Statements for the year ended 31 March 2014, and the Company's Consolidated Financial Statements for the year ended 31 March 2013, on which the Company's audit firm KPMG Accountants N.V. ("KPMG") provided an unqualified audit opinion dated 25 June 2014 and 26 June 2013 respectively.

For a better understanding of the Company's financial position and results, we emphasize that the abbreviated consolidated financial information should be read in conjunction with the Company's Consolidated Financial Statements as of and for the year ended 31 March 2014 and the Company's Consolidated Financial Statements as of and for the year ended 31 March 2013, from which the abbreviated consolidated financial information was derived.

Preparation of Consolidated Financial Statements on a going-concern basis

The Group has incurred losses during the year ended 31 March 2014 and has negative equity as at 31 March 2014. The ultimate parent company - Jubilant Enpro Private Ltd - has given assurance for financial support for continued operations of JENV up to September 2015, should this be required. Considering the financial support from parent company and other additional factors such as internal accruals from producing block, expected cash flows from KG block in near future and other funding options, the Group has assessed that going concern assumption is appropriate and has thus prepared the financial statements on a going concern basis.

3. Trade and other receivables - current

Footnotes:

a) Represents amounts due from co-ventures on account of non-payment of cash calls raised by the Group in respect of operated blocks and/or advance payments made by the Group in respect of non-operated blocks.

b) The recoverable from co-ventures includes USD 6,426 thousand (31 March 2013: USD 8,383 thousand) from a joint venture partner, on which partner has raised certain issues, management is in active discussion with partner and believes that amount is fully recoverable and no provision is required in this respect.

c) Restricted cash - margin money represents margin money against guarantees and letters of credit. Restrictions on margin money deposits are released on the expiry of the terms of guarantees and letters of credit.

4. Loans and borrowings (including accrued interest)

5. Share capital

Issued and paid-up share capital

Share premium

Footnotes:

1) Authorised share capital

The authorised share capital of JENV as at 31 March 2014 is 874,200,000 shares of USD 12,145 thousand equivalent to EUR 8,742 thousand (31 March 2013: USD 12,145 thousand equivalent to EUR 8,742 thousand), having the par value of EUR 0.01 (31 March 2013: EUR 0.01) per share.

2) Issued share capital

The issued share capital of JENV as at 31 March 2014 is 416,306,787 shares (31 March 2013: 416,306,787 shares).

There is no change in the issued share capital of JENV during the year ended 31 March 2014 and 31 March 2013.

All issued shares are fully paid up. The holders of ordinary shares are entitled to receive dividend as declared from time to time and are entitled to one vote per share at the meetings of the Company.

3) Share premium

There has been no change in the share premium of JENV during the year ended 31 March 2014 and 31 March 2013

4) Foreign currency translation reserve

The foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.

5) Stock options outstanding reserve

The stock options outstanding reserve comprises the amounts recognised in respect of the equity-settled share-based payments to certain employees and others providing similar services.

6. Impairment

During previous years, Group has recognised impairment loss for carrying value of exploration and evaluation assets for Mehsana, Cauvery, Golaghat and Australia blocks. Impairment loss in respect of expenditure at Golaghat Block has been recognised due to the uncertain future exploration program on account of non approval of forest diversion.

7. Earnings per share

The following is the reconciliation of the loss attributable to ordinary shareholders and weighted average number of ordinary shares used in the computation of basic and diluted earnings per share:

The Group has issued options to its employees during the year ended 31 March 2014 and 31 March 2013. Since the Group does not have profits during the current year and in the previous year, the options issued are considered to have an anti-dilutive effect. Therefore, the basic and diluted EPS are the same.

8. Related Parties

(a) Related parties and nature of relationships where control exists

(b) Related parties and nature of relationships where transactions have taken place during the year

(c) Related party transactions

(d) Guarantees given by ultimate holding company

a) Secured foreign currency term loans taken by JENV from EXIM: Corporate guarantees in respect of these loans have been given by Jubilant Enpro

b) Secured foreign currency term loan taken by JENV from Axis Bank: Corporate guarantee in respect of this loan has been given by Jubilant Enpro.

c)

Secured term loans taken by JEKPL from banks: These loans are secured by primary charge on all present and future receivables of Jubilant Enpro relating to Kharsang field.

d) Non-fund based limit taken by JOGPL, JODPL and JEKPL to furnish bank guarantee: Corporate guarantee in respect of this non-fund based facility has been given by Jubilant Enpro.

(e) Secured term loans taken by JODPL from banks: JEHBV has entered into an arrangement of Right of Sale of paid-up shares of JENV (by way of Project Support Undertaking/non-disposal undertaking and Power of Attorney on the DMAT account), as held by JEHBV, having market value equivalent to INR 2,000,000 thousand as on the date of the arrangement.

(f) During the year, JEHBV has availed a foreign currency loan of USD 45,000 thousand from EXIM for utilisation of the loan proceeds towards investments in/on-lending to the subsidiaries of the Borrower mainly for exploration, development and related activities in various operating companies owning oil and gas assets. This loan is secured by the following:

- Negative lien on the present and future PI and receivables pertaining to all other oil and gas assets held by the Company and/or subsidiaries and any other company which holds/shall hold (PI) in any oil and/or gas block; provided that in case of fund raising for a particular oil and gas asset/block against security of the first charge on the PI and related cash flows or escrow of receivables in the said asset/block with prior approval of Exim Bank, the negative lien stands converted into a second charge over the PI and residual cash flows/receivables after meeting the debt service obligations of the first charge-holder(s).

- An Undertaking from JENV and its subsidiaries for non-disposal of their shareholding in their respective subsidiaries.

- An irrevocable and unconditional Corporate Counter-Guarantee by JEKPL for guaranteeing the due performance and discharge by Jubilant Enpro of its obligations and liabilities in terms of the counter-guarantee backed by first pari passu mortgage of its Participating Interest (PI) held in Kharsang oil field and first pari passu charge by way of hypothecation over the receivables in respect of the said PI held in the Kharsang oil field.

- An irrevocable and unconditional Corporate Counter-Guarantee by JODPL for guaranteeing the due performance and discharge by Jubilant Enpro of its obligations and liabilities in terms of the counter-guarantee backed by second pari passu mortgage of its Participating Interest (PI) held in KG block and second pari passu charge by way of hypothecation over the residual cash flows in respect of the said PI held in the KG block. The charge shall rank subservient to the first charge in favour senior lenders to JODPL.

(g) As at 31 March 2014, performance guarantee amounting to USD 2,624 thousand (31 March 2013: USD 2,885 thousand) given on behalf of Jubilant Securities Private Limited against a lien on the term deposits of JENVPL in respect of Golaghat block.

(h) As at 31 March 2014, performance guarantee amounting to USD 1,658 thousand (31 March 2013: USD 1,823 thousand) given on behalf of Jubilant Capital Private Limited against a lien on the term deposits of JEKPL in respect of Ankleshwar block.

(i) As at 31 March 2014, performance guarantee amounting to USD 779 thousand (31 March 2013: USD 856 thousand) given on behalf of Jubilant Capital Private Limited against a lien on the term deposits of JENVPL in respect of Ankleshwar block.

(j) Pledge of 51% of the promoters' shareholding in JEKPL in respect of a term loan facility from banks.

(k) Non-disposal undertaking along with power of attorney in respect of 51% of the total issued and paid-up shares of JODPL held by JOGIL.

(l) BG limit of USD 3,347 thousand (31 March 2013: USD 3,680 thousand) is available for JCPL and JSPL within the overall limit of USD 12,718 thousand (31 March 2013: USD 13,982 thousand) of JOGPL and negative lien on participating interest of JCPL and JSPL in the blocks.

9. Contingencies

Contingent liabilities in respect of matters currently in dispute comprise:

Considering the facts and current status of the cases listed above, management is confident that there shall not be any liability devolving on the Group in this matter and therefore no provision has been made in the books.

10. Events occurring after the balance sheet date

Subsequent to year end, the Company entered into another loan agreement with Jubilant Energy (Holding) B.V., immediate holding company of the Company, for an unsecured loan of USD 5 million for funding the operations of the Group.