Half Yearly Report

1 December 2014

Jubilant Energy NV ("Jubilant" or "the Company")

Interim Results for the six months period ended 30 September 2014

Jubilant Energy N.V, an upstream oil and gas company with assets in major proven and prolific hydrocarbon basins, primarily in India, is pleased to announce its interim results for the six months ended 30 September 2014.

Highlights

· Following two gas discoveries in the Tripura block, an appraisal plan for North-Atharamura-1 discovery has been submitted to MOPNG and a field development plan for the Kathalchari discovery is under preparation and will be submitted before 13th January 2015.

· Updated Reserves and Resources statement published in July 2014 on Kharsang field in Arunachal Pradesh

· Interpretation of high quality 3D seismic data for the Kharsang field is at final stages of completion. This will lead to a significant drilling programme of step out and infill wells as well as establish new reserves in deeper plays through the drilling programme commencing FY 2015-16;

· The Government of India has announced the New Domestic Natural Gas Pricing Guidelines 2014, giving a formula for gas price determination, which on GCV basis computes to a gas price of $ 5.05/MMBTU (around $ 5.61/MMBTU on NCV basis, comparable to earlier price of $ 4.2/MMBTU on NCV basis) effective from 1st November 2014 and valid to the end of March 2015. The prices will be revised every 6 months on the basis of formula as provided in the aforesaid guidelines

· Facilities completed and commissioned at Deen Dayal West field in KG offshore block with 2 wells on test production.

Production

· 274,266 barrels gross oil production (68,566 barrels net to Jubilant) at the Kharsang field during the reporting period as against 338,360 barrels gross oil production (84,590 barrels net to Jubilant) in the corresponding period;

· Test production underway at the Deen Dayal West field in the KG offshore block. Following certain commissioning delays and an extended production optimization programme, first gas sales is now expected in Q4 2014-15.

Financial

· Revenues: USD 6.3 million (H1 2013-14: USD 8.4 million);

· Profit from operating activities: USD 2.5 million (H1 2013-14: USD 4.9 million);

· Loss for the period static: USD 6.3 million (H1 2013-14: USD 6.3 million)

· Total outstanding debt: stood at USD 530 million (of which USD 515 million of principal borrowed amount) as at 30 September 2014; undrawn debt facilities of USD 5 million;

· Cash balance aggregating to USD 39.6 million; USD 14.5 million in cash and cash equivalents representing cash and term deposits with original maturity less than three months and USD 25.1 million in trade and other receivables representing term deposits with original maturity greater than three months. This includes USD 32.5 million earmarked for Deen Dayal West project.

· Current funding is being provided by the Promoters; raised funds USD 20 million during the reporting period as unsecured loans from Jubilant Bhatia Group companies;

· Recent gas price fixation by Government of India is much below the price, which was earlier notified by the Government based on recommendations of Rangarajan Committee; however this price was kept in abeyance due to elections in India and finally it could not be implemented. The Oil & Gas Industry in India is deliberating with Government for improved gas price.

Outlook

· The Field Development Plan for Kathalchari discovery and appraisal plan for North Atharamura Discovery will be executed with the objective of ascertaining block level reserves as well as expected well production levels so as to put in place a long term gas monetization plan;

· At Kharsang field, the Operator is taking steps to implement short-term solutions such as radial drilling, fracpack, gas lift in the existing wells to arrest the decline in production; further, based on the 3D seismic interpretation results, the Operator is taking steps to enhance the production by infill and step-out drilling to be carried out in next financial year.

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

· The Company is evaluating future work programme and funding options.

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

"Throughout 2014 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 in the near term as well as to establish full potential of the field. The Deen Dayal asset in KG basin continues to progress slowly.

We are also working closely with GAIL (India) Limited, our partner at Tripura, to develop a three year execution plan for Tripura aimed at establishing a significant reserve base which along with expected well productivity will determine the long term gas monetization plan.

Meanwhile, Oil & Gas industry in India continues to discuss with the Government long term gas pricing which will be an important driver for determining long term value of our assets.

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.

Glossary of abbreviations

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The Notes on pages 10 to 23 are an integrated part of this Condensed Consolidated Interim Financial Statements.CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

The Notes on pages 10 to 23 are an integrated part of this Condensed Consolidated Interim Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX-MONTHS PERIOD ENDED 30 SEPTEMBER 2013

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2014

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX-MONTHS PERIOD ENDED 30 SEPTEMBER 2014

The Notes on pages 10 to 23 are an integrated part of this Condensed Consolidated Interim Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(continued from previous page)

(In thousands of USD dollars)

The Notes on pages 10 to 23 are an integrated part of this Condensed Consolidated Interim Financial Statements.

1. Organisation and nature of operations

Incorporation and history

Jubilant Energy NV ('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 (Holdings) 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 Condensed Consolidated Interim Financial Statements of the Group as at and for the six-months period ended 30 September 2014 comprise the Company and its subsidiaries (together referred to as the 'Group' and individually as 'Group entity') and the Group's proportionate interest in unincorporated joint arrangements.

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. This Condensed Consolidated Interim Financial Statements reflects only the Group's proportionate interest in such activities.

The list of subsidiaries of the Company along with their principal activity, their respective date of incorporation and country of incorporation is as follows:

* JEL Canada dissolved voluntarily and a certificate certifying the dissolution was issued by the BC Registry on 23 December 2013. Consequent upon the said dissolution, all the ordinary and preference shares of JOGIHL, JEIHL, JRIHL and JEHVL held by JEL Canada were transferred to JENV, the immediate holding Company of JEL, Canada and accordingly all the 4 Cyprus entities viz. JOGIHL, JEIHL, JRIHL and JEHVL became the direct subsidiaries of JENV.

# The Group has a 100% controlling interest in all of the subsidiaries except as follows:

- JOGIL holds a 99.99% controlling interest in JEKPL as at 30 September 2014 and 31 March 2014.

- JOGIL holds a 99.99% controlling interest in JODPL till 31 March 2014. As at 30 September 2014 JOGIL holds 64.03% controlling interest and JENV holds 35.97% controlling interest in JODPL.

- JOGIL holds a 99.99% controlling interest in JOGPL till 31 March 2014. As at 30 September 2014 JENV holds 64.37% controlling interest and JOGIL holds 35.63% controlling interest in JOGPL.

- JOGIL holds a 99.80% controlling interest in JENVPL as at 30 September 2014 and 31 March 2014.

The Group is a member of eleven unincorporated joint arrangements for the exploration, development and production from the following blocks:

* Joint arrangement between three subsidiaries (JODPL, JOGPL and JEKPL), hence 100% for the Group as a whole.

# The Group has already impaired the carrying amounts of the blocks.

@ The Group is in the process of relinquishment of the blocks.

** During the year ended 31 March 2014, the permit had been cancelled and a formal exit was granted to the Group from Petroleum Exploration Permit 'T-47P' in Australia, without any financial impact.

2. Basis of preparation and measurement

a) Statement of compliance

This condensed consolidated interim financial statements has been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the last annual consolidated financial statements as at and for the year ended 31 March 2014. This condensed consolidated interim financial statements does not include all the information required for complete set offinancial statements prepared in accordance with International Financial Reporting Standards.

The Condensed Consolidated Interim Financial Statements has been authorised for issue by the Board of Directors in its meeting held on 28 November 2014.

b) Preparation of Condensed Consolidated Interim Financial Statements on a going-concern basis

The Group has incurred significant losses during the six months period ended 30 September 2014 and during the year ended 31 March 2014, and has a negative equity of USD 35,407 thousand and a negative working capital of USD 16,255 thousand as at 30 September 2014. The group has obtained from the ultimate parent company - Jubilant Enpro Private Ltd - unequivocal assurance for financial support for continued operations of JENV up to September 2015, should this be required and has prepared the financial statements on a going concern basis. In assessing whether the going-concern assumption is appropriate, the management has taken into consideration the following additional factors:

i) The Group has significant hydro carbon reserves/resources as confirmed in competent person's report.

ii) The Group is working on a range of strategic options for the business and its medium to long-term funding.

iii) The Group had, during the year ended 31 March 2013, tied up funding arrangements for the capital expenditure on development of its key asset, viz., KG block.

iv) Kharsang block is a producing block and has a history of profitable operations, generating internal accruals on a consistent basis. Additionally, its key asset, KG block is likely to commence production of hydro carbons shortly, thus there would be additional internal accruals.

v) The Group may approach various financing resources from outside agencies/banks/financial institutions based on the estimates of reserves/resources as evaluated by an independent expert.

Based on the above, the management has assessed that the going-concern assumption is appropriate.

3. Significant accounting policies

The accounting policy applied by the Group in these condensed consolidated interim financial statements are same as those applied by the Group in its last financial statements as at and for the year ended 31 March 2014.

4. Estimates

The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this condensed consolidated interim financial statements, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 March 2014.

5. Financial risk management

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 March 2014.

6. Segment reporting

The Chief Operating Decision Maker analyses the operating results of each of the oil and natural gas assets separately. Since all the oil and natural gas assets have similar characteristics such as nature of production process, nature of products, etc., the Group has aggregated all such oil and natural gas assets, and accordingly, it has only one reportable segment, i.e., oil and natural gas. Hence, no separate segment information has been furnished herewith.

7. Property, plant and equipment (including capital work-in progress) (PPE)

During the six-months period ended 30 September 2014, the Group has acquired assets with cost (including capitalized borrowing cost (also refer note 9)) of USD 36,991 thousand (30 September 2013: USD 34,153 thousand and 31 March 2014: USD 69,830 thousand).

Movements in property, plant and equipment are as follows:

# includes amount transferred from intangible exploration and other intangible assets amounting to USD 12,550(30 September 2013: Nil) (refer note 8 below).

During the year ended 31 March 2014, based on the report of an independent expert, the Group had made a revision in the quantity of proved developed reserves of oil. The impact of such change had resulted in increase in depletion by USD 108 thousand for the year ended 31 March 2014.

8. Intangible exploration and other intangible assets

*Represents exploration and evaluation CWIP, which consists of the Group's exploration projects which are pending determination of technical feasibility and commercial viability of extracting a mineral resource. Costs under the head 'Internally developed' represent the Group's share of costs incurred on exploration and evaluation assets during the period/year.

# The Group is a member of an Unincorporated Joint Venture of Ahmedabad (Sanand Miroli) PSC with a 20% participating interest. The said block consists of two areas Sanand (Part A) and Miroli (Part B). The Field Development Plan (FDP) of Part A and Part B areas has been approved by the Management Committee. The revised FDP covering the Kalol discovery in SE-4 cluster in Part A has been submitted to DGH for its approval. During the current period, considering that the consortium has certainty and plan to do further development activities including drilling of development wells, the cost incurred by the Group till 30 September 2014 has been transferred from intangible exploration assets to capital work-in progress under property, plant and equipment (refer note 7 above).

9. Borrowing cost

The capitalization rate used to determine the borrowing cost eligible for capitalization in respect of general purpose borrowings is 10.36% p.a. for the six-months period ended 30 September 2014 (30 September 2013: 12.78% p.a.).

Further, the effective rate used to determine the borrowing cost eligible for capitalization in respect of specific purpose borrowings is 14.50% p.a. for six-months period ended 30 September 2014 (30 September 2013: 14.20% - 14.30% p.a.).

During the six-months period ended 30 September 2014, the Company has allocated borrowing cost of USD 24,739 thousand (30 September 2013: USD 24,709 thousand) to property, plant and equipment/capital work-in progress/ intangible assets, being directly attributable to the acquisition or construction of qualifying assets. The balance borrowing cost of USD 7,088 thousand (30 September 2013: USD 8,456 thousand) has been charged to comprehensive income/ (loss).

10. Loans and borrowings (including accrued interest)

i. There has been no change in the terms and conditions of the outstanding loans including securities from the financial year ended 31 March 2014 except as detailed below:

Movement during the current period

Unsecured loans from related parties

a) During the period, JOGPL has entered into a loan agreement with Jubilant Enpro Private Limited for a loan of INR 500,000 thousand (equivalent to USD 8,132 thousand). This loan is repayable after a period of one year at an interest rate of 15.5% per annum, payable quarterly.

As of 30 September 2014, JOGPL has drawn down INR 360,000 thousand (equivalent to USD 5,855 thousand) from Jubilant Enpro Private limited.

b) During the period, JOGPL and JODPL have entered into loan agreements with Tower Promoters Private Limited for loan of INR 73,500 thousand (equivalent to USD 1,195 thousand) and INR 496,500 thousand (equivalent to USD 8,075 thousand) respectively. These loans would be repayable after a period of one year at an interest rate of 15.5% per annum, payable quarterly.

As of 30 September 2014, JOGPL and JODPL have drawn down INR 73,500 thousand (equivalent to USD 1,195 thousand) and INR 496,500 thousand (equivalent to USD 8,075 thousand) respectively from Tower Promoters Private limited.

c) During the period, JENV has entered into a loan agreement with JEHBV for loan of USD 5,000 thousand. This loan is repayable after a period of one year at an interest rate of 6 months USD LIBOR plus 450 bps per annum, payable annually.

As of 30 September 2014, JENV has drawn down USD 5,000 thousand from JEHBV.

ii. There has been no change in Non-fund based facility from the financial year ended 31 March 2014.

11. Employee benefits

The Group's provident fund scheme is a defined contribution plan. The Group's gratuity scheme is a defined benefit plan. Gratuity is paid as a lump sum amount to employees at retirement or termination of employment at an amount based on the respective employee's eligible salary and the years of employment with the Group. The Group has made provision for gratuity on the basis of actuarial valuation.

12. Share-based payment plans

In January 2010, the Group had established a share option programme that entitles share options of the Company to all employees of the Group and others providing similar services under the Stock Option Plan. All the options would vest in four staggered installments on an annual basis over a four-year period. In general, the options are exercisable in accordance with the vesting schedule over a period of four years beginning from the date of vesting .In January 2010 JENV had granted 11,542,846 share options.

The Board of Directors, at its meeting held in November 2010, approved the modification in the terms and conditions of the Stock Option Plan and also decided to increase the reserved number of ordinary shares of JENV from 15,304,586 to 17,671,098 (face value of EUR 0.01 each).

As a part of modification, the exercise price of the option was reduced to GBP 0.696 (equivalent to USD 1.12) per share and the vesting period was changed to start from 1 April 2010 onwards. Further, in the same board meeting, the Group granted further options for 4,225,680 shares and 667,843 shares to the employees with the vesting period commencing from 1 April 2010 and 15 October 2010 respectively.

During the year ended 31 March 2012, the Group further granted options for 100,000 shares with the vesting period commencing from 01 April 2011.

The Group has adopted Black-Scholes Model to measure the fair value of the option by taking into account the terms and conditions upon which the options were granted.

A. Charge to the Statement of Comprehensive Income towards equity-settled share-based payments and the movement in share-based compensation reserve is as given below.

B. Movement in the share options outstanding

Footnotes:

a) The options have been forfeited due to the employees leaving the services during the period ended 30 September 2014 and 30 September 2013.

b) The Group has assumed 5% attrition rate per annum.

The Group had estimated the volatility in the share price based on the standard deviation of the natural logarithm of returns over the period in the share prices of the companies comparable with the Group.

Estimated remaining contractual life of the options as at 30 September 2014 is 3.55 years [30 September 2013: 4.53 years and 31 March 2014: 4.05 years]

13. Provisions

The Group's site restoration obligations arise from its ownership interest in oil and natural gas assets.

The total future site restoration obligation is estimated based on the Group's net ownership interest in all wells and facilities, estimated costs to reclaim and abandon these wells and facilities and the estimated timing of the costs to be incurred in future years. The Group has estimated the net present value of its total site restoration obligation based on an undiscounted total future liability. The majority of costs are expected to be incurred within a period of next 25 years. The estimation is based on existing technology of site restoration of the Group's oil and natural gas fields and production facilities. The discount factor, being the risk-adjusted rate related to the liability, is estimated to be 8% for the period/year ended 30 September 2014 (31 March 2014: 8%).

14. Operating leases

The Group had taken office premises and various residential premises under operating lease arrangements. The leases were cancellable at the option of the Group. Rental expenses under these leases for the six month period ended 30 September 2014 amounted to USD 65 thousand (net of expenses recovered USD 30 thousand) [30 September 2013: USD 7 thousand (net of expenses recovered USD 1 thousand)].

The Group had taken additional office premises on non-cancellable operating lease. The lease term was for a non-cancellable period of five years which expired during the period ended 30 September 2013. Rental expense under this lease for the six month period ended 30 September 2013 amounted to USD 49 thousand (net of expenses recoveredUSD 97 thousand).

15. Income tax expense

Income tax expense is recognised based on Management's best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period.

Effective tax reconciliation:

16. 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 period

(a) Related party transactions

(b) Key management personnel compensation*

The key management personnel compensation (net of reimbursements) is as follows:

* Provision for defined benefit obligation and other long-term employee benefits has not been considered, since the provisions are based on actuarial valuations for the Group's entities as a whole.

(c) There is no change in guarantees/securities given by related parties in respect of performance of blocks/loans taken by the Group as compared to 31 March 2014.

17. Capital commitments

In accordance with the terms of the production sharing contracts entered into by the Group along with other consortium partners with the Government of India in respect of oil and natural gas fields/blocks, the Group has certain minimum exploration and development commitments with estimated expenditure of USD 1,165 thousand as at 30 September 2014

(31 March 2014: USD 538 thousand and 30 September 2013: USD 785 thousand). Capital commitments are identified based on the contracts entered into with the suppliers/service providers.

The Group has continuing commitments towards minimum work programmes, etc., in terms of production sharing contracts for various oil and natural gas assets. Such commitments aggregate to USD 87,394 thousand as at 30 September 2014 (31 March 2014: USD 100,773 thousand and 30 September 2013: USD 95,884 thousand).

18. Contingencies

There are no significant changes in the last contingencies disclosed in the consolidated financial statements as at and for the year ended 31 March 2014.

19. Subsequent events

There were no material post subsequent events which have a bearing on the understanding of the financial statements.

20. Foreign currency translation

The Group has converted Indian Rupees ('INR') balances to 'USD' equivalent balances on the following basis:

· For conversion of all assets and liabilities, other than equity, as at the reporting dates, the exchange rates prevailing as at the reporting date have been used, which are as follows:

- as at 30 September 2014: USD 1 = INR 61.48

- as at 31 March 2014: USD 1 = INR 59.76

- as at 30 September 2013: USD 1 = INR 62.70

· For conversion of all expenses and income on statement of comprehensive income and the cash flow statement, for the respective periods, periodic average exchange rates have been used, which are as follows:

- For the six months ended 30 September 2014: USD 1 = INR 60.07

- For the six months ended 30 September 2013: USD 1 = INR 58.90