Successful Result of Natural Gas Production Test in Block A Aceh, Indonesia

In November 2012, Japan Petroleum Exploration Co., Ltd. (the "Company") began drilling the Matang-1 exploration well through its 100% subsidiary, Japex Block A Ltd., in the Matang structure in Block A Aceh in Indonesia's Aceh region. A production test was recently conducted and approximately 700,000 m³ of natural gas per day has been successfully produced.

Medco, the operator of the block, possesses abundant experience both inside and outside Indonesia. Based on the results of the recent test, the Company will continue to work with the operator in evaluating the expansion of the relevant structure and other specifics.

On the oher hand, the feasibility of commercialization of three gas fields including Alur Siwah structure is also being conducted in the block. FEED work are underway for making a final investment decision toward its development.

The Company's efforts to maximize the block's value will continue as it remains committed to the project for the exploration and development of oil and gas in Indonesia. The project covers, among many others, the Kangean Block, which is currently producing and marketing approx.300 million ft³ of natural gas per day (50,000 barrels oil equivalent per day) at peak rate.

[Overview of the Matang-1 well]

1. Location: Block A in Aceh, Indonesia
2. Scope: Matang structure, Bampo formation
3. 3. Test depth: Approx. 2,400 m (total depth)

4. Results (daily production): Approx. 700,000 m³/D of natural gas

[Overview of Japex Block A Ltd. ]

• Trade name: Japex Block A Ltd.
• Location: 1-7-12 Marunouchi, Chiyoda-ku, Tokyo
• Representative: Nobuaki Moritani, president
• Establishment: April 26, 2006
• Capital: 2.34 billion yen
• Shareholder: 100% owned by the Company