Japan Petroleum Exploration Co., Ltd. (JAPEX) announces that its Board of Directors has resolved to transfer its gas manufacturing, sales, and gas pipeline business in Hokkaido Prefecture (collectively hereinafter the "Business") to Hokkaido Electric Power Co., Inc. (HEPCO) (hereinafter the "Business Transfer"), today.
Exploration, development, and production (E&P) business for crude oil and natural gas in Hokkaido Prefecture is excluded from the Business Transfer. It will continue to be operated by JAPEX.

１．Reason for the Business Transfer

JAPEX has consistently provided a stable supply of natural gas from the Yufutsu Oil and Gas Field and LNG received at the LNG terminal to customers in Hokkaido Prefecture via gas pipelines and tank trucks.
Under the "JAPEX Management Plan 2022-2030," formulated in March 2022, as part of our efforts to strengthen profitability and build a medium- to long-term business foundation, JAPEX reviewed its business portfolio. As a result, JAPEX has decided to transfer the Business.
JAPEX continues production operation at the Yufutsu Oil and Gas Field, the base for our E&P operation in Hokkaido Prefecture, and will supply natural gas to the transferee, HEPCO.

２．Outline of the Business Transfer

ⅰ. Outline of the Business

The gas manufacturing and sales business involve the sale of natural gas via gas pipelines and the sale of LNG received at the LNG receiving terminal via tank trucks.
The gas pipeline business provides commissioned transportation services of natural gas using the gas pipelines owned within Hokkaido Prefecture.

ⅱ. Financial position of the Business (for the year ended March 2025)

ⅲ. Transferred Assets and Liabilities and Amounts (As of March 31, 2025)

*Recognized as memorandum value

ⅳ. Transfer Price

31 billion yen

３．Outline of the counterparty to the Business Transfer

４．Transfer Schedule

*The Business Transfer qualifies as a simplified business transfer under the parenthetical provision of Article 467, Paragraph 1, Item 2 of the Companies Act. It will therefore be executed without obtaining shareholders' meeting approval.

５．Outlook

In connection with the Business Transfer, JAPEX forecasts recognizing extraordinary income in the consolidated results for the fiscal year ending March 2027. The specific amount is currently under review. Should any matters requiring disclosure arise, JAPEX will promptly disclose stakeholders.