Interim Results

10 December 2012

Jubilant Energy NV

("Jubilant" or "the Company")

Interim Results for the period ended 30 September 2012

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 interim results for the six months period ended 30 September 2012.

FINANCIAL OVERVIEW

·; Revenues stable at USD 8.6 million in the first half of the current financial year, despite lower international oil prices. 

·; Average oil price realised decreased by 5 % to USD 112 per barrel.

·; Profit from operating activities of USD 2.2 million against a loss of USD 49,000 in the corresponding period of the previous year.

·; New rupee loan agreement signed with a consortium led by State Bank of India for a 12 year term loan facility of INR 1,340 crores (approximately USD 254 million) in September 2012. Facility to fund the capital expenditure for appraisal and development of the Company's KG Block and repayment of the existing facility of INR 650 crores (USD 123 million).

·; Net debt of USD 328 million as of 30 September 2012. Undrawn facilities for the KG Block and cash balance available to the company total approximately USD 151 million (converted at USD 1 = INR 52.65 as of 30 September 2012).

OPERATIONAL OVERVIEW

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

·; Average gross production of 1,857 bopd during H1 2012-13, up from 1,757 bopd in the same period of 2011-12 as a result of the successful seven well development drilling programme.

·; Cumulative production from the field was 10.47 MMbbls as at 30 September 2012.

·; Six of the seven wells of the Phase III development drilling programme tested oil and put on production, currently contributing to approximately 700 bopd. One well tested gas and has been kept shut for future gas utilization, as it is commercially viable.

·; Drilling of an additional six development wells under the Phase III extension drilling programme, commencing Q1 2013.

·; Various production enhancement pilot schemes commenced from November 2012.

·; Acquisition of 3D seismic of 87 square kilometres underway and expected to complete by May 2013, before the rainy season.

·; A Reserves and Resources Estimation prepared by Gafney, Cline & Associates ("GCA") as of 31 December 2011, updating its earlier estimate as of June 30, 2010:

o Gross reserves increased by 9.5% to 5.31 MMbbls, adjusted for production.

o Gross Contingent gas resources ranges from 15.9 bcf to 43.5 bcf, with 2C gas resources at 27.7 bcf, increase of 45%.

o Gross Contingent Oil resources range from 2.47 MMbbls to 3.85 MMbbls, with a 2C Oil resources of 3.13 MMbbls, an increase of 286%.

o Significant exploration upside.

Development Programme - Deen Dayal West Field in Krishna Godavari basin ("DDW") (WI - 10%)

·; Development of KG on track for first gas in H2 2013.

·; The Well Head Platform set in May 2011 and currently being used for batch drilling of four development wells.

·; Other facilities such as the Production and Living Quarter Platform ("PLQP"), Onshore Gas Terminal ("OGT") and pipeline are all on schedule for first gas production in H2 2013. The OGT 80% complete, whilst the PLQP and submarine pipeline were 74% and 48% respectively completed by end October 2012.

·; The Government approved the extension to the existing DDW development area by 20.5 square kilometres in January 2012 thus increasing the total development area to 37.5 square kilometres.

·; Reserves and resources update by GCA as of 31 May 2012, post the approval of the DDW Extension area and the drilling of the appraisal wells in the DDE area. Upward revision in the Gross Contingent Resources (2C) in the Deen Dayal Structural complex revised upwards by approximately 11% for gas and 10.2% for condensate over the earlier estimates of June 2010.

Exploration and Appraisal Upside

Tripura (WI - 20%)

·; Declaration of Commerciality ("DOC") for the Kathalchari discovery, incorporating the results of the wells drilled in the Tulamura anticline, currently being finalised. DOC scheduled for submission on 28 December 2012 after necessary approvals.

·; The first deeper exploratory well, Matabari-1 on Tulamura anticline, under the Phase-II programme, spudded in May 2012 and drilled to 3,287 metres against a target of 4,060 metres due to drilling complications. In the Middle Bhuban formation, gas bearing sands encountered of which one sand interval tested with mini DST. Detailed testing is scheduled for December 2012. with a workover rig.

·; The second deeper exploratory well, North Atharamura-1 in Atharamura anticline, expected to be spudded in December 2012 with a targeted depth of 4,060 metres.

·; Completed the 2D seismic survey of 125 lkms under the Phase-II programme in Atharamura. Recording of 70% completed.

Manipur - North and South Blocks (WI - 100%)

·; Approximately 30% of 540 kilometres of 2D seismic acquisition completed in both the North and South blocks.

·; Received the processed data of the Airborne Gradiometric survey from the Government, and is being integrated with current geological dataset.

·; Six drilling locations based on prospect and logistics feasibility shortlisted in the two blocks.

Myanmar (WI -77.5%)

·; Strategic entry into Myanmar achieved with the acquisition of the PSC-I block. PSC signed in May 2012.

·; Commenced operations activities and successfully completed reconnaissance survey in August 2012.

·; Sub-surface technical work underway. Completed archiving of subsurface and seismic data collected from MOGE.

·; A tender for 2D seismic acquisition floated and bids are currently being evaluated.

·; Branch Office registration Certificate received from DICA in October 2012 and necessary bank accounts opened and operational.

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

"Jubilant has continued to deliver on its strategy and has made significant progress across all aspects of its portfolio. At present the Kharsang field is achieving its highest ever recorded production due to a successful seven well Phase III development drilling programme and as such the Company is undertaking an additional six well Phase III development drilling programme, which is expected to commence in Q1 2013. The KG basin continues to be the Company's most significant asset and remains on course for first gas in H2 2013. Jubilant continues to press ahead with its exploration and appraisal programmes in Manipur and Tripura as we look to maximise the potential of these very promising assets. Earlier on in the year Jubilant acquired Block PSC-I in Myanmar, complementing its already existing portfolio and a further extension to the Company's strategy. Myanmar is a proven hydrocarbon region and is an exciting move for Jubilant.

The Company has an extensive programme planned across all of its assets as we look to maximise the potential of our portfolio. The considerable opportunities remain hugely promising as we look ahead to 2013 and we look forward to updating the market over the course of the year"

Enquiries:

Competent Person's - Consent for Release

Mr. Ramesh Bhatia - Vice President (Exploration), 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

Chief Executive's Statement

The six months ended 30 September 2012 has been a period during which the Company has continued to develop its strategy of building and exploiting its diverse portfolio of exploration, development and producing oil and gas assets in major proven and prolific hydrocarbon basins in India and Myanmar.

The continued development of the Deen Dayal West field in the KG block remains on course to deliver first gas in H2 2013. The Kharsang block, on average, produced approximately 1,857 bopd for the first six months of the year, an increase of 5.7% over the same period of 2011-12 as a result of the successful seven well development drilling programme. We are particularly excited to start our exploration and appraisal programme in Manipur and Tripura, located in the prolific and proven hydrocarbon basins in the north east of India. The period also saw us make a strategic entry into Myanmar with the acquisition of PSC-I block.

This is a very exciting time for the Company with considerable opportunities ahead. We have an extensive programme across our assets as we look to maximise the potential of our portfolio.

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

The Kharsang block, located in the Upper Assam basin in the north-eastern region of India, is the Company's oldest block and has been in production since 1983. Jubilant has a 25 per cent interest in the block and is operated by Geo Enpro Petroleum Ltd.

Gross production from the field during the first six months of the financial year totalled 339,730 bbl (1,857 bopd), up by 5.7% compared to the corresponding period of the preceding year. This was mainly due to a successful seven wells Phase III development drilling programme. Six of the seven wells tested oil and have been put on production contributing to approximately 700 bopd. The remaining well tested gas and has been kept shut for future gas utilization, as it is commercially viable. The field is at present producing in excess of 2,000 bopd, achieving its highest ever recorded production of 2,253 barrels of oil on 23 October 2012, beating the previous high of 2,227 achieved in December 2009.

In line with the Company's strategy to maximise the potential of its producing assets a Phase III Extension Development drilling plan comprising six wells is scheduled to commence in Q1 2013, aimed at further adding to the production profile of the Kharsang field.

The average realised oil price per barrel, which is linked to Bonny Light and Qua Ibo, during the first six months of the financial year, was USD 112 as compared to USD 117.93 for the first six months of 2011-12 reflecting the general softening of international crude prices during the period.

The consortium is also piloting various other projects in order to increase the production from the Kharsang field, as summarised below:

·; Sand Control - A gradual decline in production was observed due to caving build up in all producing wells in the C to I layers, resulting in increased downtime. A pilot project commenced in November 2012 on the first of the two wells to reduce down time and achieve additional oil gain, using Weatherford's SandAid proprietary Technology, being implemented for first time in India. The success of this pilot project shall help us in reducing the well down time, multi-zone completion for shallow wells and a good lead for A&B wells.

·; Wax Inhibition - A pilot project planned for wax control in one of the wells to reduce down time and achieve additional oil gain through a downhole heater arrangement is expected to be commissioned in Q1 2013.

·; Multi-Zone Single String and Dual String Completion - A pilot project is planned in December 2012 to complete existing wells having multiple producing layers in southern area with down-hole chemical injection for wax inhibition. Two wells are planned for single string Multi-Zone completion whilst one well is planned for dual string Multi-Zone completion.

·; Gas Lifting Using CNG - Gas lift is being viewed as the most suitable lift method for the Kharsang field, in view of sound reservoir surveillance/management. An engineering study for the integrated project initiated covering:

o Compression of associated gas presently being flared.

o Implement lift gas system in phased manner and optimize well production.

o Recover liquids from wet gas during compression.

o Stop flaring of gas and put into the system for sale.

The deeper exploratory well, KPL-DX, which was spudded in August 2011, was drilled to a depth 1,609 metres MD against a target of 2,828 metres TVD. The well was temporarily plugged and abandoned due to high pressure encountered at 1,609 metres MD. The well encountered potential hydrocarbon bearing sands at 1,557 metres MD, 1,583 metres MD and 1,607 metres MD. The plan for re-entry and exploration in deeper prospects is currently under consideration, the consortium has identified an international specialist consultancy to advise on re-entry and the testing of prospective zones. The scope of work for the consultant will also include well design and drilling operational management for an alternate exploratory well, down dip of KPL-DX.

The acquisition of approximately 87 square kilometres of 3D seismic survey in the field has commenced and is expected to be completed by May 2013 before the onset of the rainy season. The survey will provide better subsurface imaging and understanding of potential hydrocarbon zones in the Kharsang field.

A Reserves and Resources Estimation was prepared by GCA as on 31 December 2011, updating its earlier estimate as of June 30, 2010. The highlights of the reserves and resources update are:

o Gross reserves increased by 9.5% to 5.31 MMbBls, adjusted for production.

o Gross Contingent gas resources ranges from 15.9 bcf to 43.5 bcf, with 2C gas resources at 27.7 bcf, increase of 45%.

o Gross Contintent Oil resources range from 2.47 MMbbls to 3.85 MMbbls, with a 2C Oil resource of 3.13 MMBBls, an increase of 286%.

o Significant exploration upside- Best Estimate Gross Unrisked Prospective Resources:

Ø Namsang Oil Prospects: 2.6 MMBbls with GCoS of 75%

Ø Lower Girujan Oil Prospects: 9.9 MMBbls with GCoS of 50%

Ø Lower Girujan Gas Prospect: 102 Bscf with GCoS of 50%

Ø Tipam Gas Prospect: 296 Bscf with GCoS of 50%.

Development Programme - Deen Dayal Field in Krishna Godavari basin (WI - 10%)

The KG basin continues to be the most significant asset in the Jubilant portfolio. The operator is Gujarat State Petroleum Corporation ("GSPC"), promoted by the State Government of Gujarat, and the Company actively participates with the operator in technical evaluations.

The Ministry of Petroleum and Natural Gas of the Government of India ("MoPNG"), had approved an extension of 20.5 square kilometres to the existing contract area for the Krishna Godavari Block (KG-OSN-2001/3) in January 2012. As a result of the extension, the approved development area for Deen Dayal West (DDW) has increased from 17 square kilometres to a total of 37.5 square kilometres.

Gaffney Cline & Associates ("GCA") prepared a Reserves & Resources Update for the Deen Dayal Structural complex as of 31 May 2012 post the approval of the DDW Extension area and the drilling of the appraisal wells in the DDE area. The Gross Contingent Resources (2C) for the block has been revised upwards by approximately 11% for gas and 10.2% for condensate over the estimates of 30 June 2010.

The Contingent Resource estimates audited by GCA as of 31 May 2012 for the DDWE area are summarized below:

The comparative Contingent Resources as of 31 May 2012 and 30 June 2010 are summarized below:

The development of the Deen Dayal West Field ("DDW") is expected to produce first gas in H2 2013. Current activities include setting up shore-based handling facilities and development. The Well Head Platform was set up in May 2011 and the batch drilling of four development wells commenced in September 2011. The overall progress achieved on the platform is approximately 94.5%. The first development well was spudded using a jack-up rig in September 2011 with the rig batch drilling the top hole sections of the four wells. Subsequently, a more cost efficient modular rig replaced the jack up rig, which was moved to DD East to drill the second appraisal well.

The current status of the four development wells is given below:

1. DDW-D1 5,459 metres MD (up to targeted depth)

2. DDW-D2 4,691 metres MD (up to 12 ¼ ")

3. DDW-D3 5,272 metres MD (up to targeted depth)

4. DDW-D4 4,200 metres MD (up to 12 ¼ ")

The Onshore Gas Terminal was 80% complete by the end of October 2012 and is expected to be commissioned in time for first gas. The Onshore Gas Terminal (OGT) is being developed to process the

multiphase dehydrated fluid being received from the offshore process platform (PLQP) to meet the specifications of gas sales. The OGT facility is being setup over a 69 hectare plot, located approximately 3.5 kilometres west of the shore line in Mallavaram village, near RIL's Onshore Terminal of the KG D6 development. Plant facilities are spread over 48.7 hectares and a green belt development is to be taken-up over 20.3 hectares. By the end of October 2012 the PLQP was 74% complete while the submarine pipeline was 48% complete.

The first draft of the integrated DoC for areas other than DDW of the Deen Dayal Field is under review for a final submission by 6 March 2013 and the operator has called for a Technical Committee Meeting to review the DoC in December 2012.

Exploration and Appraisal Upside

Tripura (WI -20%)

Jubilant is the operator on this block with a 20 per cent participating interest.

The Company is finalizing the DOC for the Kathalchari discovery after incorporating the results of the wells drilled in the Tulamura anticline (Srikantabari-1, KL-NE and Matabari-1). The DOC will be submitted on 28 December 2012 after obtaining the necessary approvals.

Jubilant drilled the first exploratory well, Matabari-1 in the Tulamura anticline, under the Phase-II programme. Matabari-1 well was spudded in May 2012 to explore the hydrocarbon potential of the Lower Miocene Lower Bhuban and Late Oligocene Renji sands as primary objectives and the Middle Bhuban sands as a secondary objective. This was the first exploratory well in the Block targeting deeper objectives beyond the Middle Bhuban. The well was drilled to 3,287 metres against a target of 4,060 metres due to drilling complications. In the Middle Bhuban formation, gas bearing sands were encountered of which one sand interval was tested with mini DST. Detailed testing is scheduled in December 2012 with a workover rig.

A second deeper exploration well to complete the Phase-II Minimum Work Programme, North Atharamura-1 on the Atharamura Anticline, is expected to spud in December 2012 with a targeted depth of 4,060 metres. While the Phase-II was to expire on 24 January 2013, the consortium is taking suitable action to extend the date.

The seismic programme for acquiring 125 lkm of 2D data over N Atharamura, N Ambasa and Khushiram area was taken up as a part Phase-II programme. Survey for this exploration seismic programme, which commenced in March 2012, is now complete, while the recording commenced in May 2012 and is over 70% complete.

Manipur Blocks (100%)

The two Manipur Blocks, AA-ONN-2009/1 & 2, are located in the eastern extension of the Burma-Assam-Arakan fold thrust belt which covers almost 4,000 sq kms. Best estimate prospective resources have been assessed at 4.77 tcf on an unrisked basis. GCA is working to revise the prospective resources in line with the higher Management Estimate and their report is expected shortly. With Jubilant holding 100 per cent PI, the blocks provide significant long term upside potential.

Jubilant embarked upon a 2D seismic acquisition programme of 540 lkms in the two Manipur blocks. To date, over 260 lkms have been surveyed despite the rough terrain and logistical challenges and recording of over 150 lkms has been completed.

Jubilant had contracted Bell Industries to undertake an airborne gradiometer survey which was completed in November 2011 and 5,273 lkms of data was acquired. The processed and first pass interpretation outputs submitted to the Ministry of Defence for security vetting has now been released to Jubilant by DGH in July 2012. The data will now be integrated with the current geological dataset.

A number of drilling locations were scouted within the two blocks and based on the prospect and logistics feasibility, six locations have been shortlisted.

Myanmar (WI - 77.5%)

Jubilant acquired block PSC-I awarded under the Myanmar Onshore Blocks Bidding Round in 2011, complementing its already existing portfolio in the nearby North Eastern India. The Central Burma basin of Myanmar is rich in oil and gas resources with discoveries and production dating back to 1887 and the early 1990's. Jubilant will utilise its in-house expertise as operator of Tripura, Manipur and Assam blocks, which are geological and tectonically similar in setup to this newly awarded block.

The Production Sharing Contract (PSC) for the block was executed at Nay Pyi Taw in May 2012 between Jubilant, Parami Energy Development Company Limited (Parami) and Myanma Oil & Gas Enterprise (MOGE), an enterprise formed by the Government of the Republic of the Union of Myanmar. Jubilant holds a 77.5% participating interest in this block and will be the Operator, while Parami holds the remaining 22.5% participating interest in this block.

The block covers an area of approximately 3,600 sq km and is located about 125 kilometres North West of Yangon City. The block falls in the Irrawaddy Delta Sub-basin and partly in the Pyay Embayment Sub-basin of the Central Burma Basin, which is believed to be the most prolific sedimentary basin in Myanmar, where giant fields such as Chauk-Lanywa and Yenangyaung are located. The awarded block is also located adjacent to the Myanaung and Shwepyitha producing fields.

The Commencement of Operations Date (COD) was announced to MOGE on 23 August 2012.

A reconnaissance survey of the block was successfully completed by the Jubilant team in collaboration with MOGE and Parami representatives in early July 2012. As well as scouting the area for understanding topography, terrain, logistics, availability of infrastructure / facilities etc, the team also located and scouted the wellsites for the four existing wells to evaluate the option for re-entry.

The following data was collected from MOGE in June 2012:

·; Field 2D Seismic data

·; Log data for all the four wells

·; G&G reports including Gravity survey reports

The Sub-surface technical work is underway and we have completed archiving of subsurface and seismic data collected from MOGE. The tender for 2D seismic acquisition was floated and bids are under evaluation.

Jubilant has also received the Branch Office registration Certificate from DICA in October 2012. The necessary bank accounts have also been opened and are now operational.

Other Asset

Sanand Miroli (WI-20%)

The Company has a 20 per cent. interest in this block and GSPC is the operator. So far, 20 wells have been drilled on the block, including three appraisal wells, with seven hydrocarbon discoveries to date. A DOC for the M1-M6 discoveries submitted in 2009 was approved by the DGH. The Management Committee ("MC") of the Block has given an in-principle approval of the Field Development Plan for the M1-M6 discovery subject to condoning the 3 days delay by the Government. Pending such approval, the consortium has requested to allow the start of production from the existing two wells M1 & M1a1. All the required facilities are available to start the commercial production from two existing wells immediately.

The MC has also given its in-principle approval to the revised DOC of Sanand (Part-A) considering OIIP of 15.45 MMbbl, EUR of 0.5680 MMbbl and a Peak Rate of 229.60 BOPD. The MC also agreed to include Well SE#3 in the development plan, as the same was earlier denied by DGH since the operator had not notified the said discovery. Production is envisaged from six existing wells and one proposed horizontal well.

Outlook

Jubilant is well positioned and the year ahead promises to be another exciting one as the Company looks to build on what has been achieved during this period. The Phase III drilling programme on Kharsang is now complete and the Company is now entering an additional six well Phase III extension drilling programme. The KG field development is well on course for first gas in H2 2013. Having entered the Phase -II exploration stage in Tripura as well as commencing the next very exciting stage of the Manipur programme, the Company looks forward to providing further updates as the Company continues to push ahead over the year.

Our focus, as operator, remains on North East India and our entry into Myanmar is a further extension of this strategy as the Company looks to build upon its core strengths and in-house expertise that are already in place for this region. Myanmar is a prolific hydrocarbon region and is an exciting move for us. As the Company continues to further build on its diverse portfolio of oil & gas assets we look forward to working closely with our partners in exploring these assets further. The Company has an excellent portfolio of potentially company making assets, a team with the expertise to exploit them fully and an extensive work programme across them all. This is an exciting time for the Company as it embarks upon the next stages of its work programmes with a view to proving up the inherent value that the Company believes is across its portfolio.

Condensed Consolidated Statement of Comprehensive Income for the six-month period ended 30 September 2012

Condensed Consolidated Statement of Financial Position

Condensed Consolidated Statement of Cash Flows for the six-month period ended 30 September 2012

Condensed Consolidated Statement of Changes in Equity for the six-month period ended

30 September 2012

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 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 Report of the Group as at and for the six-month period ended 30 September 2012 comprise 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. This Condensed Consolidated Interim Financial Report reflect 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 Condensed Consolidated Interim Financial Report for the six month period ended 30 September 2012 and the Company's Consolidated Financial Statements for the year ended 31 March 2012 which has been prepared in accordance with International Accounting Standard (IAS) 34, "Interim Financial Reporting" and International Financial Reporting Standards (IFRS) as adopted by the EU respectively. These standards have been consistently applied throughout the Group and in previous years. The Company's Condensed Consolidated Interim Financial Report for the six month period ended 30 September 2012 and the Company's Consolidated Financial Statements for the year ended 31 March 2012 were authorised for issue by the Board of Directors on 07 December 2012 and on 29 June 2012 respectively.

Basis of preparation

The abbreviated consolidated financial information, which comprise the condensed statement of financial position as at 30 September 2012, the condensed 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 Condensed Consolidated Interim Financial Report for the six months period ended 30 September 2012, and the Company's Consolidated Financial Statements for the year ended 31 March 2012, on which the Company's audit firm KPMG Accountants N.V. ("KPMG") provided an unqualified review opinion dated on 07 December 2012, and unqualified audit opinion dated on 29 June 2012 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 Condensed Consolidated Interim Financial Report as of 30 September 2012 and for the six month period then ended and the Company's Consolidated Financial Statements as of and for the year ended 31 March 2012, from which the abbreviated consolidated financial information was derived.

 3. 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 2012 except as detailed below :

ii. Movement during the current period

During the six months period ended 30 September 2012, JODPL entered into a term loan agreement with a consortium of banks for a total amount of INR 13,400,000 thousand (equivalent to USD 254,511 thousand) at an interest rate of SBI Base Rate plus 450 bps. This loan shall be payable in 34 quarterly installments starting from 31 December 2015 and ending on 31 March 2024. The facility is available for repayment of outstanding Rupee Loan to the existing lenders, ongoing capital expenditure for appraisal and development of the KG DDW Block, interest payable on the term loan prior to the Scheduled Commercial Operations Date or Commercial Operations Date whichever is earlier and payment of any other financing costs, charges, expenses relating to the term loan. As per the sanction letter, the loan is secured by the following securities:

- Charge on all present and future receivables of JODPL from KG block.

- Encumbrance over JODPL's participating interest in KG block.

- Encumbrance on all intangible assets of JODPL relating to KG block.

- Encumbrance over JODPL's rights under all material contracts relating to KG block.

- Encumbrance on the Debt Service Reserve Account to be created to meet the debt service requirements.

- 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.

- Negative lien over all the preference shares of JODPL.

- A first ranking pledge of such issued and paid-up shares of JENV held (directly) by JEHBV, having a market value of INR 2,000,000 thousand as on the date of Share Pledge Agreement. The pledge of shares shall be released once the Commercial Production commences from the Deen Dayal West Extension area.

- First ranking pari passu charge on Trust and Retention Account (TRA) of JODPL.

The Group is in the process of creating above mentioned securities as on 30 September 2012.

As on 30 September 2012, JODPL has drawn down INR 1,694,000 thousand (equivalent to USD 32,175 thousand) and the same has been utilised towards the part payment of existing outstanding term loan. The earlier loan has been considered as extinguished and accordingly, the unamortized loan origination cost of USD 130 thousand has been charged to the statement of comprehensive income.

iii. There has been no change in Non-fund based facility from the financial year ended 31 March 2012.

4. 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

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 2012, except for the following:

i. During the six months period ended 30 September 2012, the bank has issued performance guarantee in respect of Golaghat block amounting to USD 2,085 thousand on behalf of Jubilant Securities Private Limited against a lien on the term deposits of JENVPL amounting to USD 104 thousand.

ii. With regard to loans refer to note 3 (ii).

5. Contingencies

There are no significant changes in the contingencies other than those disclosed in the consolidated financial statements as at and for the year ended 31 March 2012 except for the following matters:

i. Jubilant Energy Kharsang Private Limited (JEKPL):

- The Operator had entered into a contract with Geophysical Institute of Israel (GII) for acquisition, processing and interpretation (API) of 3D seismic data of Kharsang oilfield area. During the financial year 2009-10, GII has filed a claim of USD 3,112 thousand (JEKPL's share USD 778 thousand) with interest against the Operator before the Arbitration Tribunal for remaining portion of job completed, damages and theft of their equipments, loss due to non-availability of TDS certificates, payment of performance bonds and reimbursement of various administrative costs, etc. The claim is disputed by the Operator due to non-performance of entire 3D seismic project by GII in accordance with Contract provisions and also most of the claims are out of contractual provisions and hence not payable.

The Operator has also filed a counter claim of around USD 2,104 thousand (JEKPL's share USD 526 thousand) for loss suffered due to non-completion of entire 3D seismic project in accordance with Contract provisions. Pending resolution, the Operator has not acknowledged and accounted for the claim amounting to USD 2,784 thousand (net of performance guarantee amount of USD 328 thousand) plus interest as liability.

The Arbitration Tribunal has given an award on 30 July 2012 against the Kharsang PSC consortium in which liability is assessed at USD 1,796 thousand (JEKPL's share USD 449 thousand) including interest. The Operator has filed an appeal against the order of Arbitration Tribunal before hon'able High Court which has been admitted. Considering the facts and current status of the case, the Operator is confident that there is no likelihood of any liability devolving on the Kharsang PSC consortium in this matter. Therefore, no provision for the same has been made in the books of account.