Note: The following report is an English translation of the Japanese-language original.

Consolidated Financial Results
for the Three Months Ended June 30, 2016
＜Supplementary Material＞
August 5, 2016

Japan Petroleum Exploration Co., Ltd.

Cautionary Statement
Any information contained herein with respect to JAPEX’s plans, forecasts, strategies
and other statements that are not historical facts are forward-looking statements about
the future performance of JAPEX. Readers should be aware that the actual results andevents may be different from these projections because of various factors that couldoccur in the future.
The provision of this document should not be construed as a solicitation for investment.
Copyright : All information contained herein is protected by copyright, and may not be
copied or reproduced without prior consent of JAPEX.
Note: Abbreviations used herein are as follows:(a) = Actual results(f) = Forecasts
FY = Fiscal Year (FY03/17, for instance, means 12 months ending March 31, 2017)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:Investor Relations Group,Media & Investor Relations Department,
Japan Petroleum Exploration Co., Ltd.
Tokyo, JAPANTEL: +81-3-6268-7111

2

2013-06
2013-072013-08
2013-09
2013-10
2013-112013-12
2014-01
2014-022014-032014-04
2014-05
2014-06
2014-072014-08
2014-09
2014-10
2014-11
2014-12
2015-01
2015-022015-032015-04
2015-05
2015-06
2015-072015-08
2015-09
2015-10
2015-11
2015-12
2016-01
2016-02
2016-03
2016-04
2016-05
2016-06［Crude Oil Price US$/bbl]
$120
¥160

$110
¥150

$100

$90

Crude Oil price US$/bbl(Left axis)
Exchange Rate JP¥/US$(Right axis)

US$ 47.98/bbl JP¥ 104.07/US$

3

¥140

¥130

$80
¥120

$70
¥110

$60
¥100

$50
¥90

$40
¥80$30¥70［Foreign Exchange Rate JP¥/US$］

Trends in Crude Oil Prices and Foreign Exchange Rate

Japan Crude Cocktail (JCC) Price in the first 10 days of July 2016 on a prompt report basis :Consolidated Financial Forecasts for FY03/17（Highlights ）FY03/16[Billion JP¥]

1Q-2Q (a)②

Full (a)③

1Q (a)
④

60.0

124.1

240.3

42.0

Operating income(expenses)

5.3

5.4

8.3

Ordinary income(losses)

8.3

8.8

Profit attributableto owners ofparent

6.8

JCC price(US$/bbl)

1Q-2Q(f)⑤*Change
Full (f)⑥*1Q(④-①)

2Q(⑤-②)Full(⑥-③)

90.1

198.0

-17.9

-34.0

-42.2

-0.9

-3.3

-0.5

-6.3

-8.7

-8.8

4.6

3.3

-0.4

0.7

-4.9

-9.3

-3.9

7.9

2.0

1.9

0.3

1.8

-4.9

-7.5

-0.2

56.49

59.21

51.48

37.17

43.81

46.87

-19.32-15.40-4.61

Bitumen price(US$/bbl)

22.36

26.16

21.05

7.12

9.90

10.31

-15.24-16.26-10.74

Exchange rate
(JP¥/US$）119.74121.44121.06110.71

107.34106.10-9.03-14.10-14.96

Net sales

1Q (a)①

FY03/17[Assumptions]* JAPEX unveiled current forecasts by "Notice of Financial Forecasts Revision" dated August 5, 2016, regarding theconsolidated financial forecasts of the six months ending September 30, 2016, and the fiscal year ending March 31, 2017.

4

Actual results

Actual Sales of Natural Gas in 1Q FY03/17 ( year-on-year )Sales volume : Million M3
Net sales : Million JP¥

FY03/16

FY03/17

1Q (a)

1Q (a)

ChangeSales volume418

436+18Net sales

17,725

12,439-5,285

Domestic gas

Sales volume293

270-23(Domestically producedgas)

Sales volume（187）

（166）

（-20）

Overseas gas

Sales volume124

165+41Natural gas
Breakdown

Million M3600
Sales volume of overseas gas

400124165

293

270

1Q FY03/16

1Q FY03/17

Increase of sales volume byShale Gas Project in Canada

Sales volume of domestic gas

200-

Sales volume of “Overseas gas” stated herein are amounts of Japex(U.S.) Corp. and JAPEX Montney Ltd., overseas consolidated
subsidiaries.

5

Actual results

Actual Sales of Crude Oil in 1Q FY03/17 ( year-on-year )Sales volume : Thousand KL
Net sales : Million JP¥Crude Oil

FY03/16

FY03/17

1Q(a)1Q(a)ChangeSales volume602

711+108

Net sales

24,821

18,226-6,595

Sales volume9773-24

Net sales

4,489

2,164-2,324

Sales volume180326+145

Net sales

6,823

7,732+908

Sales volume

77

65-12

Net sales

1,303

329-973

Decline of the sales price

Breakdown
Domestic crude oil
Overseas crude oil
BitumenIncrease of oil sales volume
from Garraf oil field, Iraq

Assumptions
JCC price

US$/bbl

56.49

37.17

-19.32

Bitumen price

US$/bbl22.36

7.12-15.24

Exchange rate

JP¥/CA$119.74

110.71-9.03• Sales volume and net sales of “Domestic crude oil” stated herein do not include purchased crude oil.
• Sales volume and net sales of “Overseas crude oil” stated herein are amounts of 3 overseas subsidiaries (Japex (U.S.) Corp.,
JAPEX Montney Ltd. and Japex Garraf Ltd.).
• Royalty is excluded in the net sales and price of Bitumen.

6Actual Results for 1Q FY03/17 ( year-on-year )[ Million JP¥]Net sales

FY03/16

FY03/17

1Q (a)

1Q (a)

60,03542,096

Actual results

ChangeCauses of increase(+) or decrease(-)-17,938

Gross profit
Domestic crude oil and natural gas
Overseas consolidated subsidiaries-JP¥5.5 billion-JP¥1.9 billion

13,9906,446-7,543

233

125-107

SG&A expenses

8,395

7,295-1,099

SG&A expenses

Operating income (expenses)

5,362-974-6,336

Non-operating income(expenses)

Decrease of transportation cost and G&A expenses ofJACOS-JP¥ 0.2 billion
Cost reduction-JP¥ 0.8billion

2,938

4,287

+1,349Ordinary income (losses)

8,300

3,313-4,987-11-253-242

Gross profit
Exploration expenses

Extraordinary income (losses)
Income taxes1,881

471-1,409Profit (loss) attributable tonon-controlling interests

-418

678

+1,097

Profit attributable to ownersof parent

6,825

1,909-4,916

7

Non-operating income
Equity in earnings-JP¥ 2.2 billion
Fluctuations in foreign currency exchange gains andlosses+JP¥ 3.7 billion

Revised forecasts

Revised Forecasts for FY3/17
2016
2017
Full year
Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.

[Assumptions]

WTI

US$/bblPrevious forecasts

JCC price

US$/bblPrevious forecasts

Exchange rate JP\/US$JACOS
Bitumen
JMLGas1.

2.

Revised forecasts

35.00
33.27

40.00
40.00
50.00
41.25
44.70
45.52 50.00 50.00
50.00
45.00
40.00
40.00
50.00
37.17 50.00 50.00 50.00 46.87
115.00 115.00 115.00 115.00 115.00
110.71 105.00 105.00 105.00 106.10

6.35
7.12
1.95
1.58

11.53
16.80
1.87
1.34

Revised forecasts
Previous forecasts
Revised forecasts

US$/bblPrevious forecasts

CA$/mcf

Previous forecasts

Revised forecasts
Revised forecasts

1.85
1.94

1.85
1.94

8.39
10.31
1.88
1.68

“JACOS Bitumen” stated herein Bitumen selling price of Japan Canada Oil Sands Ltd. (Deduction of Royalty).
On the premise of a temporarily suspend a production operation in Demo area from May 2016, the second half ofsales does not expect.
“JML Gas” stated herein Gas sales price of JAPEX Montney Ltd. (Deduction of Royalty)
8

Revised forecasts for 1Q-2Q

Revised Forecasts Natural Gas Sales for 1Q-2Q in FY3/17(vs Previous Forecasts)

FY03/17

FY03/17

Previous forecasts
1Q-2Q (f)May 12, 2016

Revised forecasts
1Q-2Q (f)Aug. 5, 2016

Sales volume871

852-19Net sales

24,88923,615-1,274

Domestic gas

Sales volume571

540-31(Domesticallyproduced gas)

Sales volume（341）（333 ）（-9 ）Overseas gas

Sales volume300

312+12

Sales volume : Million M3
Net sales : Million JP¥

Natural gas

ChangeBreakdown

Million M3

1,000
800600

Sales volume of overseas gas

300

312

571

540

Previous forecasts

Revised forecasts

Sales volume of domestic gas

400200-

Sales volume of “Overseas gas” stated herein are amountsof Japex (U.S.) Corp. and JAPEX Montney Ltd., overseas
consolidated subsidiaries.

9Revised forecasts for 1Q-2Q

Revised Forecasts Crude Oil Sales for 1Q-2Q inFY03/17 (vs Previous Forecasts)
FY03/17

FY03/17

Previous forecasts 1Q-2Q(f) May 12, 2016

Revised forecasts 1Q-2Q(f) Aug. 5, 2016

Sales volume

1,280

1,549+270

Net sales

32,23343,048+10,816

Sales volume

150

152+2

Net sales

4,671

4,952+281

Sales volume669

820+151

Net sales

15,867

21,354+5,488

Sales volume94

92-2

Net sales

538

587+49

Sales volume : Thousand KL
Net sales : Million JP¥

Crude Oil

ChangeBreakdown
Domestic crude oil

Overseas crude oil

BitumenIncrease of sales
volume of overseas
crude oil andpurchased crude oil

Increase of sales
volume from Garraf oil
field, Iraq

Assumptions
JCC price

US$/bbl

40.00

43.81

+3.81

Bitumen price

US$/bbl

7.96

9.90

+1.94

Exchange rate

JP¥/US$

115.00107.34-7.66• Sales volume and net sales of “Domestic crude oil” stated herein do not include purchased crude oil.
• Sales volume and net sales of “Overseas crude oil” stated herein are amounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd. andJapex Garraf Ltd.).
• Royalty is excluded in the net sales and price of Bitumen.
• Bitumen production in Demo area was temporarily suspended from May 2016.

10

Revised forecasts for 1Q-2Q

Revised Forecasts for 1Q-2Q in FY03/17(vs Previous Forecasts)
FY03/17[ Million JP¥]

FY03/17

Previous forecasts Revised forecasts
1Q-2Q (f)1Q-2Q (f)May 12, 2016
Aug. 5, 2016

ChangeNet sales

80,596

90,129+9,533

Gross profit

12,698

11,698-999868

764-104

SG&A expenses

14,16814,251+82

Operating income(expenses)-2,339-3,316-977

Non-operating income(expenses)

1,967

2,849+883

Ordinary income(losses)
Extraordinary income(losses)

-372

-466

-94

-17-256-239

Income taxes

901

201-699

Profit (loss)
attributable to noncontrolling interests-1,947-1,323+624

Profit attributable toowners of parent

657

399

-258

Exploration expenses

11

Causes of increase(+) or decrease(-)
Gross profit
Domestic crude oil and natural gas+JP¥ 0.5 billion
Overseas consolidated subsidiaries-JP¥ 1.5 billion

Non-operating income
Equity in earnings-JP¥ 1.4 billion
Fluctuations in foreign currency exchange
gains and losses+JP¥ 2.3 billion

Revised full year forecasts

Revised Forecasts Natural Gas Sales for FY3/17(vs Previous Forecasts)
Sales volume : Thousand KL
Net sales : Million JP¥

FY03/17

FY03/17

Previous forecasts
Full (f)May 12, 2016

Revised forecasts
Full (f)Aug. 5, 2016

ChangeSales volume

1,811

1,816+5

Net sales

54,60755,047+441

Domestic gas

Sales volume

1,259

1,252-7(Domesticallyproduced gas)

Sales volume（737）（732 ）（-5）

Overseas gas

Sales volume551

563+12Natural gas

Breakdown

Million M3

2,000
1,800
1,600
1,400
1,200
1,000800600
400200-Sales volume of overseas gas551563

1,259

1,252

Previous forecasts

Revised forecasts

Sales volume of domestic gas

Sales volume of “Overseas gas” stated herein are amountsof Japex (U.S.) Corp. and JAPEX Montney Ltd., overseas
consolidated subsidiaries.

12Revised full year forecasts

Revised Forecasts Crude Oil Sales for FY03/17(vs Previous Forecasts)

FY03/17

FY03/17

Previous forecasts Full(f) May. 12, 2016

Revised forecasts Full(f) Aug. 5, 2016

Sales volume

2,564

2,725+161

Net sales

76,286

79,506+3,220

Sales volume296

299+3Net sales

10,288

10,133-155

Sales volume

1,326

1,486+160

Net sales

36,18240,183+4,001

Sales volume

94

92-2

Net sales

568624+56

Sales volume : Thousand KLNet sales : Million JP¥

Crude Oil

ChangeIncrease of sales
volume of overseas
crude oil

Breakdown
Domestic crude oil

Overseas crude oil

BitumenIncrease of sales
volume from Garraf oil
field, Iraq

Assumptions
JCC price

US$/bbl

45.00

46.87

+1.87

Bitumen price

US$/bbl

8.39

10.31

+1.92

Exchange rate

JP¥/US$

115.00106.10-8.90• Sales volume and net sales of “Domestic crude oil” stated herein do not include purchased crude oil.
• Sales volume and net sales of “Overseas crude oil” stated herein are amounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd. andJapex Garraf Ltd.).
• Royalty is excluded in the net sales and price of Bitumen.
• Bitumen production in Demo area was temporarily suspended from May 2016.

13

Revised full year forecasts

Revised Forecasts for FY03/17(vs Previous Forecasts)
FY03/17

FY03/17

Previous forecasts
Full (e)May 12, 2016

Revised forecasts
Full (e)Aug. 5, 2016Net sales

194,575

198,057+3,482Gross profit

30,54729,607-939

Exploration
expenses

1,867

1,839

-28

SG&A expenses

28,28028,318+38

Operating income(expenses)

400-549-950

Non-operating
income (expenses)

614

1,274+660

1,014

725-289-69-313-244

Income taxes

2,510

1,569-941

Profit (loss)
attributable to noncontrolling interests-3,550-3,031+518

Profit attributable toowners of parent

1,985

1,874-110[Million JP¥]

Ordinary income(losses)
Extraordinary
income (losses)

ChangeCauses of increase(+) or decrease(-)

14

Gross profit
Domestic crude oil and natural gas+JP¥ 1.0 billion
Overseas consolidated subsidiaries-JP¥ 2.0 billion

Non-operating income
Equity in earnings-JP¥ 1.6 billion
Fluctuations in foreign currency exchange gains
and losses+JP¥ 2.2 billion