Completion of Participation in Natural Gas Development & Production Project and LNG Project in British Columbia, Canada

Japan Petroleum Exploration Co., Ltd. (JAPEX) previously announced in our news release on March 4^th, 2013 that it entered into a Heads of Agreement with Petroliam Nasional Berhad (PETRONAS) to participate in a natural gas development and production project in British Columbia, Canada and a planned LNG project on the western coast of the same province, both of which are undertaken by PETRONAS through Progress Energy Canada Ltd and its affiliates.

Today, JAPEX is pleased to announce that it has completed the necessary procedures for the participation in the project. 

JAPEX acquired a 10% interest of the natural gas blocks in North Montney, British Columbia through our Canadian subsidiary, JAPEX Montney Ltd. established on March 7^th, 2013, as well as 10% interest of Pacific Northwest LNG Project which is under contemplation located on Lelu Island within the District of Port Edward on land administered by the Port of Prince Rupert (estimated LNG production volume: 12MMtonnes/y), including a commitment to offtake 1.2MMtonnes/y of LNG which is equivalent to the 10% interest. 

In commemoration of the completion of our participation, we had a signing ceremony at the New Otani, Tokyo on April 29, with Tan Sri Dato' Shamsul Azhar Abbas, President & CEO of PETRONAS and its top management. In the ceremony, PETRONAS and JAPEX reconfirmed our decades-long relationship and mutual enthusiasm toward the project.