Interim Results for the period ended 30 September

20 December 2013

Jubilant Energy NV

("Jubilant" or "the Company")

Interim Results for the period ended 30 September 2013

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 interim results for the six months ended 30 September 2013.

Highlights

· Two gas discoveries at the Tripura block, North Atharamura-1 (NA-1) exploration well;

· 180-200 BOPD oil flow tested at each of the SE-4 and SE-3 wells, Sanand-Miroli block;

· High quality 3D seismic data successfully recorded at the Kharsang field.

· Ongoing development of the Deen Dayal West field in the KG offshore block; first commercial gas expected in H1 2014;

Production

· 338,360 barrels gross oil production (84,590 barrels net to Jubilant) at the Kharsang field during the reporting period including incremental production from the new Phase III extension development drilling programme wells as against 339,626 barrels gross oil production (84,906.5 barrels net to Jubilant) in H1 2012-13;

· Oil production commenced in November 2013 from the Sanand Miroli Block;

· First gas at the Deen Dayal West field (DDW) in the KG offshore block expected in the near term.

Operations

· All six wells drilled as part of the Kharsang Phase III extension development drilling programme;

· Seismic processing of 125 lkm 2D data on the Atharamura anticline in the Tripura block completed;

· HongHua awarded the contract for 2D seismic data acquisition on the Company's Myanmar block; contract for seismic reprocessing also awarded to Quantum Geophysical.

Financial

· Revenues: USD 8.4 million (H1 2012-13: USD 8.6 million);

· Profit from operating activities: USD 4.9 million, increased from USD 2.2 million in H1 2012-13;

· Total outstanding debt: remains at USD 425 million as at 30 September 2013;

· USD 57 million in cash balance and undrawn facilities for the KG Block available to the Company.

Outlook

· Developing a strategy to fast track potential production of first gas from the Kathalchari discovery, Tripura block; DOC approval expected shortly;

· Finalising appraisal programme for the North Atharamura discovery, Tripura block;

· The recent commencement of oil production from the Sanand Miroli field will be incremental to the Company's net production;

· 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 2014.

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

"Throughout 2013 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 H1 2014. 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 is being finalised. The commencement of oil production from the Sanand Miroli field 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, 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.

Glossary of abbreviations

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX-MONTHS PERIOD ENDED 30 September 2012

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 March 2013

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX-MONTHS PERIOD ENDED 30 September 2013

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(continued from previous page)

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORT

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 (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. Trading of the shares of the Company commenced on Alternative Investment Market (AIM), London on24 November 2010.

The Condensed Consolidated Interim Financial Report of the Group as at and for the six-months period ended 30 September 2013 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 Report 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:

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

- JOGIL holds a 99.99% controlling interest in JODPL, JOGPL and JEKPL as at 30 September 2013 and 31 March 2013.

- JOGIL holds a 99.80% controlling interest in JENVPL as at 30 September 2013 and 31 March 2013.

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

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

** The Production Sharing Contract (PSC) for the block was executed at Nay Pyi Taw on 28 May 2012 between the Group, Parami Energy Development Company Limited (Parami) and Myanmar Oil & Gas Enterprise (MOGE) (an enterprise formed by the Government of the Republic of the Union of Myanmar).

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

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

*** Refer note 19.

2. Basis of preparation and measurement

a) Statement of compliance

This condensed consolidated interim financial report 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 2013. This condensed consolidated interim financial report 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 Report has been authorised for issue by the Board of Directors in its meeting held on 19 December 2013.

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

The Group has incurred significant losses during the six months period ended 30 September 2013 and during the year ended 31 March 2013, and has a negative equity of USD 26,984 thousand and negative working capital of USD 25,891 thousand. 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 December 2014, 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 in near future, 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 independent expert.

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

3. Significant accounting policies

Except as described below, the accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 March 2013. The following changes in accounting policies are also expected to be reflected in the group consolidated financial statements as at and for the year ending 31 March 2014:

The Group has adopted the following new standards and amendment to standards, including any consequential amendment to other standards, with a date of initial application from 01 April 2013.

- Amendments to IFRS 7 Financial Instruments: Disclosures [see foot note (a)]

- IFRS 12 Disclosure of Interests in other entities [see foot note (a)]

- IFRS 10 Consolidated Financial Statements [see foot note (b)]

- IFRS 11 Joint Arrangements [see foot note (c)]

- IFRS 13 Fair Value Measurement [see foot note (d)]

- Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) [see foot note (e)]

- IAS 19 Employee Benefits (2011) [see foot note (f]

- Annual Improvements to IFRS 2009-2011 Cycle [see foot note (g)]

The nature and the effect of the changes are further explained below:

(a) The adoption of these standards does not have any impact on the condensed interim financial statements of the Group.

(b) As a result of IFRS 10 (2011), the Group has changed its accounting policy for determining whether it has control over and consequently whether it consolidates its investees. IFRS 10 (2011) introduces a new control model that is applicable to all investees, by focusing on whether the Group has power over an investee, exposure or rights to variable returns from its involvement with the investee and ability to use its power to affect those returns. In particular, IFRS 10 (2011) requires the Group consolidate investees that it controls on the basis of de facto circumstances.

In accordance with the transitional provisions of IFRS 10 (2011), the Group reassessed the control conclusion for its investees at 1 April 2013. The change had no significant impact on the condensed interim financial statements of the Group.

(c) As a result of IFRS 11, the Group has changed its accounting policy for its interests in joint arrangements. Under IFRS 11, the Group classifies its interests in joint arrangements as either joint operations or joint ventures depending on the Group's rights to the assets and obligations for the liabilities of the arrangements. When making this assessment, the Group considers the structure of the arrangements, the legal form of any separate vehicles, the contractual terms of the arrangements and other facts and circumstances. Previously, the structure of the arrangement was the sole focus of classification.

The Group has evaluated the impact of IFRS 11 on its joint arrangements and has reclassified its jointly controlled assets as joint operations under IFRS 11. IFRS 11 requires the Group to recognise its involvement in a joint operation, its assets, liabilities and transactions including its share as specified in the contractual arrangement. Notwithstanding the reclassification, there is no impact on the recognised assets, liabilities and comprehensive income of the Group.

(d) IFRS 13 establishes a single framework for measuring fair value and making disclosures about fair value measurements, when such measurements are required or permitted by other IFRSs. In particular, it unifies the definition of fair value as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date. It also replaces and expands the disclosure requirements about fair value measurements in other IFRSs, including IFRS 7 Financial Instruments: Disclosures. Some of these disclosures are specifically required in condensed interim financial statements for financial instruments. However, since the Group does not have assets and liabilities that are measured at fair value on a recurring or non-recurring basis in the statement of financial position after initial recognition, no additional disclosure has been incorporated in the condensed consolidated interim financial report.

In accordance with the transitional provisions of IFRS 13, the Group has applied the new fair value measurement guidance prospectively, and has not provided any comparative information for new disclosures. Notwithstanding the above, the change had no significant impact on the measurements of the Group assets and liabilities.

(e) As a result of the amendments to IAS 1, the Group has modified the presentation of items of other comprehensive income in its condensed statement of comprehensive income, to present separately items that would be reclassified to profit or loss in the future from those that would never be. Comparative information has also been re-presented accordingly.

The adoption of the amendment to IAS 1 has no impact on the recognised assets, liabilities and comprehensive income of the Group.

(f) As a result of IAS 19 (2011), the Group has changed its accounting policy with respect to recognition of actuarial gain and losses/remeasurement related to defined benefit plan.

Under IAS 19 (2011), the Group has adopted the policy of immediately recognizing actuarial gain and loss/remeasurement related to defined benefit liability in other comprehensive income.

Previously, the Group recognized all actuarial gains and losses arising from defined benefit plan in the income statement.

Details of the effect of the change are set below:

The Group has adopted IAS19 (2011) with effect from 1 April 2013. Comparative information has not been restated for the changes as the effect of the change in accounting policy is not material .The impact on account of revision in accounting policy is a reduction in loss for the year ended March 2013 by USD 68 thousand (30 September 2012 by USD 155 thousand) and an increase in other comprehensive loss by USD 68 thousand (30 September 2012 by USD 155 thousand).

(g) Segment information - amendments to IAS 34

The Company has only one reportable segment i.e. oil and natural gas. Therefore, this amendment does not have any impact on the condensed consolidated interim financial statements of the Company

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 report, 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 2013.

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 2013.

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)

During the six-months period ended 30 September 2013, the Group has acquired assets with cost (including capitalized borrowing cost (also refer note 9)) of USD 34,153 thousand (30 September 2012: USD 39,735 thousand and 31 March 2013: USD 88,993 thousand).

Movements in property, plant and equipment are as follows:

During the year ended 31 March 2013, based on the report of an independent expert, the Group made a substantial upward revision in the quantity of proved developed reserves of oil including on account of drilling additional infill and step-out development wells which were drilled under the Phase III drilling programme and the successful work-over activities. The impact of such change has resulted in a decrease in depletion by USD 787 thousand for the six months period ended 30 September 2012.

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.

9. Borrowing cost

The capitalization rate used to determine the borrowing cost eligible for capitalization in respect of general purpose borrowings is 12.78% p.a. for the six-months period ended 30 September 2013 (30 September 2012: 12.90% p.a.).

Further, the effective rate used to determine the borrowing cost eligible for capitalization in respect of specific purpose borrowings is in the range of 14.20% - 14.30% p.a. for six-months period ended 30 September 2013 (30 September 2012: 14.25% p.a.).

During the six-months period ended 30 September 2013, the Company has allocated borrowing cost of USD 24,709 thousand (30 September 2012: USD 18,127 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 8,456 thousand (30 September 2012: USD 6,784 thousand) has been charged to comprehensive income.

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 2013 except as detailed below :

Movement during the current period

Secured foreign currency term loans

a) During the period, in relation to the foreign currency term loan of USD 50,000 thousand taken by the Company from Export Import Bank of India ("EXIM"), JEKPL and JODPL signed Indenture of Mortgage in favour of EXIM to create first pari-passu charge over JEKPL's PI in Kharsang and receivables thereof and second and subservient pari-passu charge over JODPL's PI in KG block and receivables thereof.

Secured term loan from banks

a) During the period, in relation to term loan facility amounting to INR 13,400,000 thousand taken by JODPL from State Bank of India (SBI) led consortium of Banks, SBI approved an alternate arrangement of Right of Sale of shares (by way of Project Support Undertaking / non-disposal undertaking and Power of Attorney on the DMAT account) in lieu of Pledge of paid-up shares of JENV held by JEHBV, having market value equivalent to INR 2,000,000 thousands. Approval from other consortium lenders is awaited. The security / arrangement is yet to be created.

During the period, JODPL has further drawn down INR 1,181,900 thousand (equivalent to USD 20,066 thousand) out of the above term loan facility.

b) During the period, in relation to term loan facility amounting to INR 3,250,000 thousand taken by JEKPL from Central Bank of India, JEKPL and JODPL signed Indenture of Mortgage in favour of Central Bank of India to create first pari-passu charge over JEKPL's PI in Kharsang and receivables thereof and second and subservient pari-passu charge over JODPL's PI in KG block and receivables thereof. Further, JENV signed a deed of corporate guarantee in favour of Cenral Bank of India.

Unsecured loans from related parties

a) During the period, JOGPL and JODPL have entered into loan agreements with Jubilant Enpro Private Limited for loans of INR 50,000 thousand (equivalent to USD 797 thousand) and INR 120,000 thousand (equivalent to USD 1,914 thousand) respectively. These loans would be repayable after a period of 3 years from the date of first disbursement of the loan. The loans are at the interest rate of 15% per annum, payable quarterly.

As of 30 September 2013, JOGPL and JODPL has drawn down INR 50,000 thousand (equivalent to USD 797 thousand) and INR 120,000 thousand (equivalent to USD 1,914 thousand) respectively from Jubilant Enpro Private limited.

b) During the period, JODPL has entered into a loan agreement with Tower Promoters Private Limited for loan of INR 300,000 thousand (equivalent to USD 4,785 thousand). This loan is repayable after a period of 3 years from the date of first disbursement of the loan. The loan is at the interest rate of 15.5% per annum, payable within 30 days of the end of financial year.

As of 30 September 2013, JODPL has drawn down INR 300,000 thousand (equivalent to USD 4,785 thousand) from Tower Promoters Private limited.

c) During the period, JENV has entered into a loan agreement with JEHBV for a loan of USD 2,500 thousand. The loan is for a period of 3 years at an interest rate of 6 month USD LIBOR plus 300 bps, payable quarterly.

As of 30 September 2013, JENV has drawn down USD 2,500 thousand from JEHBV.

d) During the year ended 31 March 2013 and period ended 30 September 2013, JOGIL has entered into loan agreements with JEHBV for an amount aggregating to USD 20,000 thousand. The loans are for a period of 3 years at an interest rate of 6 month USD LIBOR plus 300 bps, payable quarterly.

As of 30 September 2013, JOGIL has drawn down USD 14,000 thousand from JEHBV.

ii. There has been no change in Non-fund based facility from the financial year ended 31 March 2013.

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.

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.

* Refer footnote (c).

B. Movement in the share options outstanding

Footnotes:

a) The options have lapsed due to the employees leaving the services during the period ended 30 September 2013 and 30 September 2012.

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

c) Subsequent to 30 September 2013, the Group has forfeited 2,094,337 options due to voluntary resignation of employees. The current period reversal includes the impact of the above forfeiture.

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 2013 is 4.53 years [30 September 2012 : 5.53 years and 31 March 2013 : 5.04 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.

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-months period ended 30 September 2013 amounted to USD 7 thousand (net of expenses recovered USD 1 thousand) [30 September 2012: USD 8 thousand (net of expenses recovered USD 13 thousand)].

The Group had also taken additional office premises on operating lease. The lease term was for a non-cancellable period of five years, renewable for a further period of four years at the mutual agreement of both the parties. Rental expense under this lease for the six months period ended 30 September 2013 amounted to USD 49 thousand (net of expenses recovered USD 97 thousand) [30 September 2012: USD 67 thousand (net of expenses recovered USD 108 thousand)].

Non-cancellable operating lease rentals are payable as follows:

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 2013, except for the following:

i. With regard to loans refer to note 10.

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 785 thousand as at 30 September 2013(31 March 2013: USD 2,723 thousand and 30 September 2012: USD 269 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 95,884 thousand as at 30 September 2013 (31 March 2013: USD 115,154 thousand and 30 September 2012: USD 125,727 thousand).

18. Contingencies

There are no significant changes in the contingencies disclosed in the consolidated financial statements as at and for the year ended 31 March 2013 except for the following matter:

Jubilant Energy Kharsang Private Limited (JEKPL):

- The Operator had entered into a contract with C.A.T. Geodata GmbH (CAT) for acquisition, processing and interpretation (API) of 3D seismic data of Kharsang Oil Field area during the financial year 2011-12. On repeated failure of CAT to perform its contractual obligations, the Operator terminated the contract and encashed the unconditional performance Bank Guarantee of USD 524 thousand (JEKPL's share USD 131 thousand). During the year 2012-13, CAT filed an Arbitration Petition before Hon'ble Supreme Court for appointment of Sole Arbitrator to resolve the dispute and claimed return of Bank Guarantee of USD 524 thousand (JEKPL's share USD 131 thousand), payment for unpaid Invoice of USD 57 thousand (JEKPL's share USD 14 thousand) and direct operational expenses of USD 2,487 thousand (JEKPL's share USD 622 thousand). Disposing of the Arbitration Petition, Hon'ble Supreme Court has appointed the Sole Arbitrator to resolve the dispute.

During the period ended 30 September 2013, the Sole Arbitrator passed a procedural order inter-alia issued certain directions with respect to filing of pleadings by the parties. The Operator has filed its Statement of Defense along with counter claim of USD 864 thousand (JEKPL's share USD 216 thousand). CAT filed their reply and the operator filed rejoinder to its counter claim. Pending resolution, the Operator has not acknowledged and accounted for the claim amounting to USD 3,068 thousand (JEKPL's share USD 767 thousand) plus interest as liability. The Operator is of the belief that its position is likely to be upheld. Therefore, no provision for the same has been made in the books of account.

19. During the period ended 30 September 2013, in respect of T-47/P permit in Australia, the National Offshore Petroleum Titles Administrator ("NOPTA") had given its consent to the title holders to the block to enter into a Good Standing Agreement ("GSA") before 31 May 2013 in relation to the unfinished third year work program. The Group has decided not to enter into a GSA with NOPTA. Subsequent to the period end, the permit has been cancelled by NOPTA. This has no financial implication.

20. Events occurring after the balance sheet date

Subsequent to the period ended 30 September 2013, as a part of rationalization of its Group Structure, the Group has approved the voluntary dissolution of its wholly owned subsidiary, Jubilant Energy Limited, Canada after which the JENV will be directly holding 100% shares in JEIHL, JOGIHL, JRIHL and JEHVL.

21. 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 2013: USD 1 = INR 62.70

- as at 31 March 2013: USD 1 = INR 54.36

- as at 30 September 2012: USD 1 = INR 52.65

· 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 2013: USD 1 = INR 58.90

- For the six months ended 30 September 2012: USD 1 = INR 54.70