Interim Results

17 December 2010

Jubilant Energy NV

("Jubilant" or "the Company")

Interim Results for the period ended 30 September 2010

Jubilant Energy N.V. is an upstream oil and gas company with assets in the major proven and prolific hydrocarbon basins primarily in India. The Company is pleased to announce its maiden interim results for the six month period ended 30 September 2010, following the Company's AIM listing in November 2010.

Highlights

·; The financial and operating results reflect the continued steady progress on the Company's portfolio with capital expenditure of approximately USD 22 million of undertaken during the period

·; Achieved average gross production of approximately 1,910 barrels per day in Kharsang block during six months ending September 2010, up from 1,711 barrels per day for the same period of previous year

·; Commenced award of contracts for production facilities in Krishna Godavari ("KG") block, a highly proven and prolific region

·; Revenues of USD 6.03 million, 29.7% higher compared to the corresponding period of preceding financial year

·; Average oil price realised over the period was USD 79.2 per barrel, 27% higher compared to the corresponding period in the previous year

·; The loss resulting from operating activities for the period was USD 3.8 million, against the profit of USD 1.9 million in the corresponding period of preceding financial year, mainly due to higher production costs for workovers and increased production, investing in human resources through stock option plan, training and additional hiring and higher administration, legal and professional charges

·; Internal capabilities significantly strengthened with hiring of technical and non-technical personnel with considerable international expertise in oil and gas

Post period events

·; Raised equity of GBP 53.4 million (USD 85 million) on AIM in November 2010

·; Secured a new debt facility of USD 70 million with a four year capital repayment moratorium to refinance an existing facility due in March 2011

·; Strong cash position of over USD 85 million on December 1, 2010 following the Company's fundraising and IPO on AIM

·; Signed Petroleum Exploration License Deed for two Manipur Blocks (100 per cent. participating interest) in November 2010. Gross unrisked best estimate prospective resources for each of the five anticlines range from 380 Bcf to 1.43 Tcf

Current Work Programme

·; To drill six wells across the portfolio in the coming 6 to 8 months comprising two exploration wells in Tripura, one appraisal well in KG and three exploration wells in Golaghat

·; Commence drilling of development wells in KG from May 2011, after the mechanical completion of well head platform

·; Approval awaited for additional extension area in KG block

·; Drill infill development wells in Kharsang in 2011 to increase production; target of 2,600 bopd (gross) by 2013

·; Explore opportunities to strengthen the Company's asset portfolio, including through bidding at the forthcoming New Exploration Licensing Policy round (NELP-IX)

Mr. Shyam Sunder Bhartia, Chairman of Jubilant Group commented:

"2010 was a momentous year for Jubilant Energy. Whilst the Company has continued to make significant progress operationally, our listing on the AIM market of the London Stock Exchange has undoubtedly been the highlight of the year. This is a highly significant event for the Company and means that our work programme is fully funded through next year.

We have built, and will continue to build, an exciting portfolio of assets, across all aspects of the E&P model, in the proven and prolific hydrocarbon basins of India. India is the world's fourth largest economy and the demand for hydrocarbons continues unabated. Jubilant is ideally positioned to benefit from the energy imbalance that is currently prevalent in India and take full advantage as India and the hydrocarbon industry there develops.

I would also like to take this opportunity to welcome our new shareholders as well as thank all our staff and advisers for their hard work during the intense IPO process. The Board believes that 2011 promises to be another exciting year for the Company as we build upon our asset base and deliver further value to all our shareholders."

Enquiries:

Competent Person's - Consent for Release

Maxwell Birley, BSc in Geological Geophysics, the Company's Chief Operating Officer, has 29 years of international experience in the exploration and production industry. He has reviewed and approved the technical information contained in this announcement pursuant to the AIM guidance note for mining and oil and gas companies.

Chief Executive's Statement

This has been a period during which Jubilant has continued to deliver on its strategy of creating sustainable shareholder value by building and exploiting its diverse portfolio of exploration, development and producing oil and gas assets focused primarily in India and put in place a platform from which to grow in the future. In particular, the Company will continue to aim to monetise the value of its reserves and convert the resources to reserves through focused and economical appraisal and development.

One of the most significant milestones for the Company occurred post the period end as it successfully completed its listing on AIM and raised new equity of GBP 53.4 million (USD 85 million).

This momentous occasion was concurrent with the securing of debt financing of USD 70 million from Central Bank of India, to refinance an existing debt facility from the EXIM Bank due in March 2011. This refinance facility has a four year principal repayment moratorium. At the time of IPO, loan facilities and bonds of USD 26.5 million were also converted into equity at the offer price.

The development of the Deen Dayal West field in the KG block is on course to deliver the first gas by H1 2013. The Kharsang block, on average produced approximately 1,910 barrels of oil per day on gross basis for the first six months of the current financial year and is expected to continue to grow in future through an infill drilling programme. With the Company's presence in most of the major proven and prolific hydrocarbon basins in the north east Indian region, which are predominantly under explored, the Company is in a very strong position and is able to leverage its expertise and technological capabilities to find and appraise significant hydrocarbon resources. Jubilant is relentless in the pursuit of cutting edge technologies and their application by a high calibre team to deliver success across its portfolio and to achieve its stated strategy.

Deen Dayal field in Krishna Godavariblock - Creating Value

Having been credited with a number of significant oil and gas discoveries in India (more than 30 Tcf), the KG basin is one of the most prominent and high potential basins in India. It is located offshore along the east coast of the state of Andhra Pradesh in south eastern India.

The operator is Gujarat State Petroleum Corporation ("GSPC"), promoted and predominantly funded by the State Government of Gujarat, India. The Company has excellent senior management relationships with GSPC and the State government. The team in the KG block comprises geotechnical and marketing professionals who provide the integrated expertise required to maximise the value of the block. The Company actively participates with the operator in technical evaluations.

Jubilant's 2P reserves in the KG Block are in the Deen Dayal West Field ("DDW") and are estimated at 161.16 Bcf of gas and 3.225 MMBbls of condensate on a participating working interest basis.

Jubilant's participating working interest 2C contingent resources are estimated at 540 Bcf of gas and 11.41 MMBbls of condensate in the KG basin. The majority of these contingent resources are contained within the Deen Dayal East ("DDE"), Deen Dayal North ("DDN"), Deen Dayal Downthrown ("DDDT") and Deen Dayal North East-BRU ("DDNE") basins.

Gas was discovered in June 2005 with the drilling of the KG-08 exploration well. A total of 16 exploratory and appraisal wells have been drilled with hydrocarbons being tested in 12 wells. The Declaration of Commerciality ("DOC"), which was submitted in May 2008, was approved in November 2008. Subsequently, the Field Development Plan ("FDP") was approved in November 2009.

It is expected that the first production of gas will commence in the first half of 2013. Over the next four and a half years, development drilling, offshore and onshore production facilities and pipelines are planned as the first phase of the overall Deen Dayal field development. The Company plans to commission a well head platform in March 2011. The drilling of development wells is to commence in May 2011. In total, fifteen development wells are planned including 11 new wells and completion of four existing wells.

The 2C Contingent Resources of DDN and DDE areas are likely to be converted to 2P reserves through submission and approval of the FDP.

Kharsang- Near Term Production Upside

The Kharsang block, located in the Upper Assam basin in north-eastern region of India, is the Company's oldest block and is currently in production. Jubilant has a 25 per cent interest in the block which is operated by Geo Enpro Petroleum Ltd. The field has 56 wells, of which 33 wells produced oil in September 2010.

The gross production from the field during the first six months of the financial year has increased to 349,521 barrels (1,910 barrels of oil per day), compared to the production of 313,057 barrels (1,711 bopd) in the corresponding period of the preceding year. The cumulative oil production from this field up to 30 September 2010 has been 9.18 MMBbls.

The nominated buyer for the oil is Indian Oil Corporation Limited, India's largest commercial enterprise. The average realised price per barrel during the period, which is tied to Bonny Light and Qua lbo, was USD 79.2.

Jubilant plans to increase gross production to 2,600 bopd by 2013. This is part of the Company's strategy to maximise the potential of its producing assets. Five development wells have been planned for 2011 and a deep exploration well is planned for 2012. The Company is also actively considering the acquisition of an additional 5 per cent effective stake in the block, thereby strengthening its reserves, resources and production position.

North East Blocks - Unlocking Potential

Manipur

Jubilant Energy was recently awarded two Manipur Blocks as an operator with a 100 per cent. participating interest under the NELP-VIII round. The Production Sharing Contracts ("PSCs") for the two blocks were signed on 30 June 2010 and 19 July 2010 respectively. The State Government of Manipur had granted the Petroleum Exploration Licenses ("PEL") to the Company for each of the blocks and subsequently, the PEL deeds were executed on 15 November 2010.

The gross unrisked best estimate prospective resources for each of the five anticlines range from 380 Bcf to 1.43 Tcf. The knowledge and experience gained at Kharsang and other blocks will be utilised to unlock the potential of these blocks. Jubilant's work programme commitments comprise:

·; 500 Lkm of 2D seismic, 300 sq km of 3D seismic and the drilling of five exploration wells for the Manipur-1 block; and

·; 500 Lkm of 2D seismic, 200 sq km of 3D seismic, and the drilling of three exploration wells for the Manipur-2 block.

The plan is to commence the acquisition of 2D seismic in 2011.

Tripura

Jubilant is the operator on this block with a 20 per cent. participating interest. The block is located onshore in the fold belt area of the Assam-Arakan Basin in north east India. Jubilant's net working interest of 2C contingent resources are estimated at 49 Bcf of gas and 0.1 MMBbls of condensate.

Three exploration wells have been drilled on the block with the Kathalchari-1 well having flowed at a rate of 5.2 MMscf/d of gas from one of the zones tested. The approved appraisal plan for the Kathalchari discovery was submitted to the Director General of Hydrocarbons ("DGH") in September 2010.

The Company is presently acquiring seismic data and is targeting to drill two exploration wells in early 2011 as part of the Phase II minimum work programme. The exploration locations have been approved by consortium partners.

Other Assets

Sanand Miroli

The Company has a 20 per cent. interest in this block with GSPC as the operator. So far, 20 wells have been drilled on the block, including three appraisal wells, with seven hydrocarbon discoveries having being made. A DOC for the M1-M6 discoveries submitted in 2009 has been approved by the DGH. A DOC for the south eastern cluster of wells was submitted to the DGH for approval at the end of July 2010. The Field Development Plan is currently under review for the M1-M6 discoveries by the consortium partners. The net working interest 2C contingent resources are 0.16 MMBbls. A farm out of the license is being considered in order to focus on the Company's other assets.

Golaghat

Jubilant operates this block with a 10 per cent. participating interest. The block is located onshore in the Golaghat district of Assam state in the north east of India. Five prospects have been identified within the Golaghat Block. The drilling of the first three exploration wells is expected to commence from early 2011 onwards. The net unrisked prospective resources for the best prospect are estimated to be 0.7 MMBbls.

Australia

The Company has 25 per cent. interest in block TA47-P in the Bass basin where Tap Oil is the operator. The 2D and 3D seismic data has been acquired, processed and interpreted and, as a result, a number of small and high risk prospects have been identified. Jubilant is in the process of evaluating ways of transferring the commitments to other offshore acreages in Australia.

Indian Oil & Gas sector

With a GDP of USD 3.7 trillion, India is the world's fourth largest economy in purchasing power parity terms whilst being the fifth largest energy consumer currently. India's per capita energy consumption is 0.51 toe as against the world per capita energy consumption of 1.8 toe. The current energy mix in India is biased towards coal which accounts for 52 per cent. of the energy source, while oil and gas constitute 32 per cent. and 10 per cent, respectively. However, gas demand in India is set to grow substantially as India moves towards cleaner fuel to fulfil its enormous need for energy.

Though India's natural gas production has increased consistently, it has remained a net importer of natural gas since 2004. Under the optimistic scenario of the "India Hydrocarbon Vision 2025", the gas demand is projected to reach approximately 313 MMscmd (11,049 MMscfd) by 2012. The key demand drivers for gas are:

·; Increasing importance of natural gas in the power sector due to environmental and quality concerns and supply constraints surrounding coal

·; Policy initiatives to promote natural gas such as City Gas Distribution projects which include large scale distribution of Piped Natural Gas for domestic usage and Compressed Natural Gas ("CNG") for the transport sector. The entire public transport in Delhi runs on CNG. The success of CGD initiative in New Delhi is being replicated in a number of regions

·; Government mandate for urea units to switch to gas by 2011 and all future urea plants to be gas based

Besides favourable demand drivers, the developments on the gas pricing front augurs well for the industry, including;

·; For all NELP blocks under PSC, private participants being allowed to market their share of gas at arm's-length prices, subject to approval of the Government of India. The gas from NELP blocks is not governed by Administrative Price Mechanism ("APM").

·; Substantial upward revision in the prices under APM to USD 4.2/MMBtu as a first step towards deregulating pricing regime to bring it in line with the market fundamentals.

·; For consumers in non-priority sectors, the pricing under APM could be as high as USD 5.25/MMBtu

·; Some re-gassified LNG contracts have been signed in excess of USD 12/MMBtu at oil price parity of USD 80/bbl.

·; Inter-Governmental Agreement signed for the Turkmenistan-Afghanistan-Pakistan-India Pipeline, estimated to be completed by 2014. The delivered gas price is potentially over USD 10/MMBtu.

Human Resources

During the current financial period, the Company has considerably upgraded its human resources. The technical team has been significantly strengthened with experts with international exposure and expertise in the geology, geophysics and petroleum engineering. In view of the planned drilling operations in Tripura and Golaghat, the Company has also added drilling engineers with wide experience in local and overseas conditions.

Further, strength and depth was also added to the finance and commercial teams to ensure that the Company can meet the increased challenges that are required of being a listed entity.

At Jubilant, we are committed to design our human resource initiatives such that they unlock the full potential of employees and the Company. To achieve this end, the Company has nearly tripled its outlay on training and development in the current fiscal year. A company-wide exercise on competency mapping has also been undertaken to identify skill and competency gaps with a view to develop a comprehensive plan for filling them.

Outlook

Jubilant has made significant progress in 2010 across the exploration programme, including the north east blocks and particularly in the development of KG. Jubilant will also continue to build its portfolio further in its core areas of strength through exploring market opportunities and participation in NELP IX.

I firmly believe that the Company is well positioned and is on its way to create sustainable shareholder value by building and exploiting its exciting diverse portfolio of exploration, development and producing oil and gas assets.

Consolidated Statement of Comprehensive Income*

*Refer note 2

Consolidated Statement of Financial Position*

*Refer note 2

Consolidated Statement of Cash Flows*

*Refer note 2

Consolidated Statement of Changes in Equity*

*Refer note 2

Notes to the accounts

1. General and principal activities

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 wholly-owned 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.

The abbreviated consolidated financial information as at and for the six months ended 30 September 2010 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 Interim Financial Statements for the six-month period ended 30 September 2010 and the Company's Consolidated Financial Statements for the year ended 31 March 2010 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 Interim Financial Statements for the six-month period ended 30 September 2010 and the Company's Consolidated Financial Statements for the year ended 31 March 2010 were authorised for issue by the Board of Directors on 16 December 2010 and on 8 September 2010 respectively.

Basis of preparation

The abbreviated consolidated financial information, which comprise the abbreviated statement of financial position as at 30 September 2010, the abbreviated statement of comprehensive income, statement of changes in equity and cash flow statement for the six-month period then ended, and related notes, have been derived from the Company's Consolidated Interim Financial Statements for the six-month period ended 30 September 2010, and the Company's Consolidated Financial Statements for the year ended 31 March 2010, on which the Company's audit firm KPMG Accountants N.V. ("KPMG") provided an unqualified audit opinion dated 16 December 2010 and on 8 September 2010 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 interim Financial Statements as of 30 September 2010 and for the six-month period then ended and the Company's Consolidated Financial Statements as of and for the year ended 31 March 2010, from which the abbreviated consolidated financial information was derived.

3. Trade and other receivables - current

Footnotes:

a) Represents amounts due from co-venturers 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) 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)

Details of interest rates of loans and borrowings are given below: -

5. Earnings per share

The following is the reconciliation of the profit 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. Since the Group does not have profits for the current year, the options issued are considered to have anti-dilutive effect. Therefore, the basic and diluted EPS are the same.

6. Impairment

The Group has identified each of its blocks (i.e. a 'production sharing contract'/'permit') as a separate Cash Generating Unit ("CGU") for the purpose of impairment testing. The Group has eight CGUs. If facts and circumstances suggest that the carrying amount exceeds the recoverable amount, Exploration and Evaluation ("E&E") assets are assessed for impairment. These facts and circumstances include expiry of the license period to explore in the near future, substantial expenditure on further E&E activities not being budgeted/planned, no discovery of commercial quantities of mineral resources, management's decision to discontinue activities in the specific areas etc.

Cauvery block

In respect of Cauvery block, the operator has drilled three wells till 31 March 2009. Out of these wells CY-1 well was tested and it discovered oil. The same was suspended for detailed testing. During the quarter ended 31 December 2009, the process of re-testing of wells was started and the test results became available in first quarter of 2010. Based on test results, the consortium decided to plug and abandon all the three wells. Accordingly, the Group had decided to impair the Cauvery block during the year ended 31 March 2010.

Australia block

The Phase I for the block was started from 5 June 2007 and the Operator had to drill two exploratory wells within a period of three years from that date. On account of low view of prospects for the block, the Group is in the discussion with the partners to find ways for cancelling future commitments and has expressed its intention to the Operator to exit via Good Standing Agreement. Based on this assessment, the Group had decided to impair the Australia block during the year ended 31 March 2010.

Accordingly, the Group had recognised impairment loss on Cauvery block and Australia block in the year ended 31 March 2010 in respect of entire amount of its share of the expenditure incurred amounting to USD 28,668 thousand.

During the six months ended 30 September 2010, the Group has further incurred USD 596 thousand on Cauvery block and USD 84 thousand on Australia block, against which impairment loss has been recognised.

7. 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

i. Secured foreign currency term loan taken by JENV from EXIM: Corporate guarantees in respect of this loan have been given by Jubilant Enpro.

ii. Secured term loan taken by JEKPL from banks: This loan is secured by primary charge on all present and future receivables of Jubilant Enpro relating to Kharsang field.

iii. Non-fund based limit taken by JOGPL to furnish bank guarantee: Corporate guarantee in respect of this non-fund based facility has been given by Jubilant Enpro.

(e) As at 30 September 2010, performance guarantee amounting to USD 1,048 thousand (31 March 2010: USD 1,043 thousand) given on behalf of Jubilant Securities Private Limited against a lien on the term deposits of JENVPL in respect of Golaghat block.

(f) As at 30 September 2010, performance guarantee amounting to USD 2,229 thousand (31 March 2010: USD 2,221 thousand) given on behalf of Jubilant Capital Private Limited against a lien on the term deposits of JEKPL in respect of Ankleshwar block.

(g) As at 30 September 2010, performance guarantee amounting to USD 1,036 thousand (31 March 2010: USD 1,033) given on behalf of Jubilant Capital Private Limited against a lien on the term deposits of JENVPL in respect of Ankleshwar block.

(h) Pledge of 51% of promoters shareholding in JEKPL in respect of term loan facility from banks.

(i) Pledge in respect of 51% of the total issued and paid up shares of JODPL held by JEIL.

8. Events occurring after the balance sheet date 

a) JOGPL received a show cause notice from the Commissioner of Service Tax dated 22 October 2010 for USD 3,631 thousand (including education cess). This show cause notice has been issued in respect of unincorporated joint venture (operated by JOGPL) for alleged non-payment of service tax on services provided by the Operator. JOGPL is in the process of filing a response with the appropriate authorities and believes that there will not be any liability in this regard.

b) The Group is planning to merge/amalgamate all the Indian entities namely JOGPL, JODPL, JEKPL and NELPV. For this, the Company has already initiated the preliminary activities and is in the process of filing the proposed merger application with the appropriate authorities.

c) JEKPL (as borrower) entered into a loan agreement with Central Bank of India (as lender), dated 13 October 2010 pursuant to which the lender agreed to lend and advance to the borrower a sum of INR 3,250 million or USD 70 million or a combination of both for augmentation of the financial resources for the repayment of the entire amount under the EXIM facility taken at JEL Canada, along with the accumulated interest. The loan shall be disbursed either by way of rupee term loan and/or foreign currency loan, depending on the availability of funds with the lender at the time of disbursement. The facility is available for disbursement till 31 March 2011, which may be extended by the lender. The facility is for a period of 7 years with repayment in three equal instalments at the end of 5th year, 6th year and 7th year from the date of first disbursement.

d) The Board of Directors, at its meeting held in November 2010, has approved the modified terms and conditions of the JENV Employee Stock Option Plan and has decided to increase the reserved number of ordinary shares of JENV to 17,671,098 (face value of EURO 0.01 each). Additionally, the exercise price and the start vesting date have been changed to 69.6 pence per share and 1 April 2011, respectively. In general, the options are exercised in accordance with the vesting schedule over a period of four years beginning from the date of grant.

e) On 24 November 2010 the Company commenced trading on Alternative Investment Market (AIM), London, having raised GBP 53,422 thousand (USD 85,000 thousand) by way of a placing of 69,379,430 new ordinary shares in the capital of the Company at a placing price of 77 pence. The funding will be used to further define the high-graded prospects and leads, and identify potential drilling locations.

f) As per the terms of the modified loan agreement dated 22 July 2010 with EXIM, USD 10,000 thousand were converted as on 24 November 2010 into 8,162,285 number of ordinary shares at 77 pence per share. Further, as per the deed of modification dated 21 June 2010 entered into with Dynamic Funds, the outstanding amount of the Unsecured subordinate convertible bonds (USCB) of USD 16,500 thousand have been converted into 13,467,772 number of ordinary shares at 77 pence per share.

9. Availability of Interim Accounts

The full version of the Interim Accounts for the period to 30 September 2010 can be found on the Company's website at www.jubilantenergy.com