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

Presentation of Consolidated Financial Results
for the Six Months Ended September 30, 2009
November 9, 2009

Japan Petroleum Exploration Co., Ltd.
1

copyright© JAPAN PETROLEUM EXPLORATION Co.,LTD. All rights reserved.

Cautionary Statement
Any information contained herein with respect to JAPEX’s plans, estimates, strategies and otherstatements that are not historical facts are forward-looking statements about the future performance of
JAPEX. Readers should be aware that actual results and events may differ substantially from theseprojections due to various factors.
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 the prior consent of JAPEX.

Note: The following abbreviations are used within this document:
1H = First half (1Q-2Q)
2H = Second half (3Q-4Q)(a) = Actual result(e) = Estimate
Any inquiries about the information contained herein or other Investor Relations questions should be directed to:Investor Relations Group, Media & Investor Relations Department,
Japan Petroleum Exploration Co., Ltd.
TEL: +81-3-6268-7111

2

Contents
1. Business Overview
President Osamu Watanabe

2. Consolidated Financial Results for the Six Months
Ended September 30, 2009
Senior Managing Director Hiroshi Sato

3. Revised full year forecasts for the Fiscal YearEnding March 31, 2010
Senior Managing Director Hiroshi Sato

3

Business Overview

Business Overview
President

Osamu Watanabe

4Business Overview

¥130

$130

¥125

$120

¥120

$110

¥115

$100

¥110

$90

Exchange Rate\/$ (right axis)

$80
$70
$60
$50

¥105
¥100
¥95
¥90

$-denominated Price$/bbl (left axis)

¥85

$40

¥80

Japan Crude Cocktail (JCC) Price in the first ten days of Oct.
（prompt report basis）＄70.49 /bbl
¥90.98 /＄5[Exchange Rate] \/ $$140

2007-01
2007-022007-03
2007-04
2007-05
2007-06
2007-072007-08
2007-09
2007-10
2007-11
2007-12
2008-01
2008-022008-03
2008-04
2008-05
2008-06
2008-072008-08
2008-09
2008-10
2008-11
2008-12
2009-01
2009-022009-032009-04
2009-05
2009-06
2009-072009-08
2009-09
2009-10[Price] $-denominated $/bbl

Trends in Crude oil prices and Foreign exchange rates

Business Overview

Revised estimate for the fiscal year ending March 31, 2010
Billion yen

Billion yen

225
200

45

202.1

[ Billion ￥]Net imcome (right axis)

173.1
153.4

150
125

35
30

129.3

25

22.3

100
75

(a)

40

Ordinary income (right axis)

175

FY2010(e)FY2009Net sales (left axis)

Revised estim ate

Revised estim ateannounced May 14 announced Aug.7

Initial estim ateannounced Nov.6

Net sales

202.1

129.3

153.4

173.1

Operating income

20.0

0.9

6.5

8.0

Ordinary income

22.3

5.9

10.7

12.5

Net income

12.5

4.7

7.7

9.1

40.00
90.00

57.38
91.39

64.31
92.43

[Oil price and Exchange rate assumptions]
JCC price($/bbl)Exchange rate(￥ /$)

89.71
102.56

20

12.5

50

10.7

12.5

7.7

9.1

4.7

0
FY2009(actual)

JCC price($/bbl)Exchange rate(￥/$)

1Q (a)

47.92
97.69

2Q (a)

65.88
95.37

3Q (e)

70.00
90.00

10

5.9

25

■FY2010 Revised estimate

15

FY2010FY2010FY2010Initial estimate Revised estimate Revised estimate
Nov.6, 2009
Aug.7, 2009
May 14, 2009

50

【Points of Revisions】① Downward revision of the sales program due toweaker demand for natural gas② Assumptions for JCC prices:
Revised Estimate Aug.7････2Q: $60.00 3Q-4Q: $60.00
Revised Estimate Nov.6････2Q: $65.88 3Q-4Q: $70.00

6

4Q (e)

Business Overview

Business Highlight during First Half of 2009（Apr．1- Sep.30, 2009)
Natural gas business
Drillings of production wells
2 wells drilled in Yufutsu oil & gas field :「Numanohata SK-9D」「Numanohata SK-10aD」

2 expansion projects of production facilities at Yufutsu oil & gas field（Hokkaido) and at
Niigata are both in progress steadily

Domestic E & P
Drilled 1 exploration well : 「Yashimakogen SK-1D」,south of Ayukawa oil & gas field
Made 2 seismic surveys:

2D seismic survey in 「Minami(south) Kashiwazaki」
3D seismic survey around 「Katakai」

Overseas E & P
Libya：

Drilled 1 exploration well in 40-3/4 block(offshore) and 1 exploration well in 176-4
block (onshore)

Canada：・Drilled delineation wells for reserve evaluation
・Conducting environmental impact assessment from May 20087

Business Overview

Domestic exploration： Result for the 1H & Plan for 2H in FY2010

 Drilling schedule
Fiscal year ending March 31,
2010

1Q

2Q

3Q

Notes

4Q

Yashimakogen SK-1D

Exploration wellIwafune Oki Z

Extention well

Yashimakogen SK-1D= result

Total Depth: 3,502m= planIwafune Oki Z
Total Depth: 2,240m

8

Business Overview

Overseas business: Basic Strategy
Ensure an appropriate portfolio balance between exploration projects& development projects
Set strategic regions, continue the regions-focused strategy
Seek up-stream & mid-stream LNG projects
CanadaOil sands development(Production & Exploration (reserve evaluation))

Sakhalin

North Africa

Sakhalin 1 Project(Production)

2 blocks in Libya(Exploration)

Middle East

Southeast Asia

Iran: JJI S&N (Production)
Iraq: Technical cooperation
with Ministry of Oil
Indonesia:
Kangean Block (Production & Development),
Block A (Development), Buton (Exploration),
Universe Gas & Oil (Production)

Legend=Strategic regions=Blocks in which our consolidated
subsidiaries, equity method companies,
etc. hold interest.

9

Business Overview

Current status of overseas business ① Canada： Oil Sands

 Canada Oil Sands Co., Ltd.

 Operator: Japan Canada Oil Sands Ltd. (JACOS)

Consolidated subsidiary (86.64% owned by JAPEX)Areas in which JACOS holds interest in oil sands leases(Canadian subsidiary, wholly owned by Canada Oil Sands Co., Ltd. )Production Area:
producing around 8,000 bbl/d of bitumen
at 19 pairs of SAGD wells in 3.75 section area
(100% interest) of the Hangingstone areaCurrent status of development of undeveloped
part of Hangingstone area (75% interest) ：－ Plan to start bitumen production with expected capacity of
up to 35,000 bbl/d in fourth quarter of 2014
－ Prepare for project licencing application in end-March 2010・assessing the volume of reserves・assessing the environmental impact
・doing conceptual planning－ FID・・・・in third quarter of 2011

Contingent resources of undeveloped oil sands
areas held by JACOS: 1,717 million barrels(as of end-December 2008)

Areas where oil sand resources were evaluated
The Hangingstone area, the Chard area, the Corner area and the Thornbury area were evaluated. The evaluated areas consist of solely
owned and jointly owned areas, are 788.4km2 (gross) or 373.4km2 (net).
Bitumen also exists in the Liege area, but there is no bitumen development plan at present due to the subsurface conditions of its existence.

10

Business Overview

Current status of overseas business ② Sakhalin 1 Project
OVERVIEW
0

OdoptuOdoptuPAD#2

5

Sakhalin 1 Consortium

10

Kilometers

PAD#1

CompanyCountry

Interest

Exxon Neftegas Ltd.

U.S.

30.0%

Sakhalin Oil and Gas
Development Co., Ltd.

Japan

30.0%

Sakhalinmorneftegas-Shelf

Russia11.5%

RN-AstraRussia8.5%

ONGC Videsh Ltd.

India

20.0%

Sakhalin Oil and Gas Development Co., Ltd. (SODECO)
Minister of Economy, Trade and Industry
JAPEX
ITOCHU Corp.
Marubeni Corp.
OthersOil to Onshore Processing
Facility at Chayvo Bay

50.00%
14.46%
14.46%
11.68%
9.40%

Oct. 2005 : Started production of crude oil. (for Russian domestic market)

OnshoreProcessing
Facility

Oct. 2006 : Commenced exports of Sokol crude.
Feb. 2007 : Reached peak gross production target (250,000 bbl/d).
PAD

Jan. 2008 : Reached cumulative production of 100 million bbl.
Mar.2008 : First dividend

Oil Line to
DeKastri
CIDS

Val【Odoptu】

May 2009:
Started drilling of production well
Latter half of 2010: Plan to start production【Arkutun-Dagi】 Now under preparation for development

ChayvoChayvoChayvoArkutun - Dagi
Arkutun-Dagi

11

Business Overview

Current status of overseas business ③ Libya: Block 40-3/4, Block 176-4¾ Japex Libya Ltd.: Consolidated subsidiary (wholly owned by JAPEX)Offshore Block 40-3/4(coastal area of the Mediterranean Sea) Interest： 42% (Operator)
 Operating result and plan:Mar.-Apr. 2009: Drilled 1st exploration well(⇒plugged & abandoned).
2010 :

Tripoli

Block 40-3/4

Plan to spud 2nd exploration well.

Block 176-4

Onshore Block 176-4(southwest area of Murzuk region)
 Interest: 100% (Operator)
 Operating result:
Jul.-Sep. 2009: Drilled 1st exploration well(⇒plugged & abandoned).

Conducting technical training for engineers from Libyan National Oil Corporation to strengthen mutual
relations.

12Business Overview

Current status of overseas business ④ Iraq

KirkukParticipation for oil development in Iraq
The 1st licensing round(End-June 2009）
・6 production oil fields were offered・Participated as a consortium⇒ unsuccessful
The 2nd licensing round(Scheduled in December 2009)
・Discovered but not-yet-developed 10 oil fields
・Final preparing for the round with potential partners

Bai Hassan

MissanWest Qurna
RumailaOther initiatives
Plan to provide technical support for 3D seismic on acertain oil fieldPlan to have courses and seminars for Ministry of oil
experts
Zubair= 6 oil fields offered in 1st licencing round13

Business Overview

Current status of overseas business ⑤ Indonesia: Kangean Block¾ Kangean Energy Indonesia Ltd. (KEI) and two other companies： Equity-method
affiliates¾

Block Name: Kangean Block(offshore East Java）¾

Jakarta

JAPEX Interest：25%

SurabayaJava Island¾

Operator: KEI¾

Current gross production:
Crude oil equivalent of around
10,000 boe/dPagerungan Utara oil field (Development)
West Kangean gas field (Exploration)
Kangean Island
Pagerungan gas field (Production)
East Java Pipeline¾¾

Plan to expand production
to around 60,000 boe/d throughproduction of additional
300 million cf/d (TSB gas field)
in 2011.

TSB gas field (Development)(Development)
To
Surabaya

Production Sharing Contract(PSC)： Effective till 2030

14

SepanｊSepanｊang Island oil field (Production)

Business Overview

Current status of overseas business ⑥ Indonesia: Block A
Japex Block A Ltd.
Consolidated subsidiary (wholly owned by JAPEX)(state-run electoric power company)(state-run fertilizer plant)

3 oil development fields

 Block Name: Block A (northern Sumatra)□ Interest: 16.67%

 PSC: till end-Aug. 2011 【⇒now applying to extend】
 After success of extending PSC…..
・ plan to start production in the middle of 2011
・ gross production for 3 gas fields of around 100 million cf/d
(crude oil equivalent of around 20,000 boe/d）15□ Operator: Medco

Business Overview

Current status of overseas business ⑦ Indonesia: Buton Block
Japex Buton Ltd.:
Consolidated subsidiary (wholly owned by JAPEX)Block Name: Buton Block(onshore/offshore block on Buton Island, Southeast Sulawesi)Interest:
Operator:40%
Japex Buton Ltd.

Jakarta

Buton Block

Operating results and plans：
2008：
・ Airborne gravity and magnetic surveys
・ 2D seismic surveys
2010：･Plan to drill 1 exploration(obligatory) well(under preparation)

16

Actual Results

Consolidated Financial Results
for the Six Months
Ended September 30, 2009
Senior Managing Director

17

Hiroshi Sato

Actual Results

Consolidated financial results for the six months ended September 30, 2009
Billion ¥Billion ¥125

25

FY20081H(a)[ Million ￥]

110.9
100

20

91.3

75 13.8

13.3

70.5

15

FY20091H(a)

FY2010 (1H)
Initial estimate

Revised estimate

Actual result

announced May14 (e)announced Aug.7 (e)(a)

Net sales

91,360 110,912

59,903

69,91370,567

Operating income

9,031

12,546( 2,008)

1,334

2,864

Ordinary income

13,825

13,321

147

3,043

5,184

Net income

9,695

9,371

91

2,105

3,498

115.39105.20

40.00
90.00

54.04
93.36

56.83
96.36

[Oil price and Exchange rate assumptions]

50

10

9.6

9.3
5.1

25

($/bbl)Exchange rate

(￥/$)

5

3.4
0

JCC price

FY20081H (a)

FY20091H (a)0
FY2008
1Q-2Q

FY20091Q-2Q

FY2010
1Q-2Q

Net sales (left axis)
Ordinary income (right axis)
Net income (right axis)

JCC price
Exchange rate
JCC price
Exchange rate

Initial estimate

FY2010 1H (e)FY201065.08
119.97

Revised estimate
annouced Aug.７

18

69.64
121.15129.82106.8440.00
90.00

JCC price
JCC price
Exchange rate
Exchange rate

JCC price：($/bbl)、Exchange rate：(￥/$)

2Q

61.10
118.79100.94103.08Exchange rate

JCC price

1H (a)

1Q

47.92
97.69
47.92
97.69

60.00
90.00
65.88
95.37

1Q - 2Q

65.08
119.97115.39105.20
40.00
90.00
54.04
93.36
56.83
96.36

Actual Results

Actual sales of crude oil in the six months ended September 30, 2009 (YoY comparison)

FY08
1H
(a)
Crude Oil:

FY09
1H
(a)

FY10
1H
(a)

YoY change

Sales volume[thousand KL]

1,227

1,028

967

( 60)

Net sales[Million￥]

59,17773,66833,008( 40,659)

65.08
119.97115.39105.20

56.83
96.36

( 58.56)( 8.84)253
12,805
83
3,806
195
4,851

255
19,709
76
5,527
205
9,500

250
9,394
23
598
188
4,140

( 4)
( 10,314)( 53)( 4,929)( 17)( 5,360)

JCC price (＄/bbl)
Exchange rate (￥/＄)[ Breakdown of equity oil ]Domestically produced crude oil:

Sales volume
Net sales

Overseas subsidiary crude oil:

Sales volume
Net sales

Bitumen:Sales volume
Net sales[thousand KL][Million ￥][thousand KL][Million ￥][thousand KL][Million ￥]Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Sales volume and net sales of “Overseas subsidiary crude oil” are the sum totals of the sales volumes and net sales
reported by two overseas consolidated subsidiaries (Japex New Nanhai Ltd. and Japex (U.S.) Corp.).

19

Actual Results

Actual sales of natural gas in the six months ended September 30, 2009 (YoY comparison)
FY08
1H
(a)

Natural gas:

Sales volume [Million M3]
Net sales[Million￥]

Of which, domestically produced gas:
Sales volume [Million M3]

FY09
1H
(a)

FY10
1H
(a)

YoY change

631

647

643

( 3)

20,102

22,90624,924

2,017

487

481

454

( 27)

Sales volume of “domestically produced gas” stated herein does not include purchased gas.

Sales volume

Essentially unchanged from the year-ago level

Slowdown in industrial demand amid deteriorating economic conditions and decline in demand for large scaleutility customers
Start of supply to new customers

Net sales

Differential profit by price revisions of prior periods

20Actual Results

Consolidated financial results for the six months ended September 30, 2009:
Causes of income fluctuations (YoY comparison) Actual Results for the six months (consolidated)
FY10
1Q-2Q
(a)

YoY change

Net sales

110,912 70,567( 40,345)

Gross profit

38,704 23,106( 15,598)

Exploration expenses

10,106

5,386( 4,719)

SG&A expenses

16,051 14,855( 1,196)

Operating income

12,546

2,864( 9,681)

774

2,320

1,545

13,321

5,184( 8,136)( 65)( 204)( 138)

3,351

1,231

( 2,120)532

250( 282)

9,371

3,498

( 5,872)[ Million yen ]Other income (expenses)
Ordinary income
Extraordinary income(losses)
Income taxes
Minority interests
Net income

FY09
1Q-2Q
(a)

21

≪Causes of increase or decrease (MEMO)≫
Gross profit
Domestic crude oil and natural gas
Overseas consolidated subsidiaries- ¥7.0 billion- ¥8.2 billion(JACOS -3.9, Japex New Nanhai -4.0， JUS-0.2)

Exploration expenses
Domestic exploration
Overseas exploration+¥3.9 billion+¥0.7 billion

SG&A expenses
Special petroleum gain levy+¥1.2 billion

Other income (expenses)
Loss on valuation of securities +¥0.8 billion
Receipt of compensation+¥0.5 billion

forecasts

Revised full year forecasts
for the Fiscal Year Ending March 31, 2010
Senior Managing Director

22

Hiroshi Sato

forecasts

Revised full year forecasts for the fiscal year ending March 31, 2010
Billion ¥Billion ¥250

45

FY2008
1Q-4Q(a)

FY20091Q-4Q(a)Net sales

207,638

Operating income30[ Million￥ ]

225

207.6

200
175
150

173.1
27.2
22.3

125
100

20.0

75

12.5
12.5

50

9.1

25

Revised estimate
announced Aug.7 (e)Revised estimate
announced Nov.6 (e)202,127

129,313

153,422173,148

19,62520,090

931

6,454

7,994

Ordinary income

27,24722,358

5,919

10,74812,53425

Net income

20,097

12,560

4,726

7,744

9,135

20

[Oil price and exchange rate assumptions]

76.21
114.6689.71
102.56

40.00
90.00

57.38
91.39

64.31
92.43

40

202.1

0

35

15

FY09
(a)

Net sales (left axis)
Ordinary income (right axis)
Net income (right axis)

FY10
(e)

JCC price($/bbl)Exchange rate

(￥/$)

10
5
0

FY08
(a)

FY2010 (1Q-4Q)
Initial estimate
announced May14 (e)FY2008(a)FY2009(a)Initial estimate

FY2010(e)Revised estimate
announced Aug. 7
Revised estimate
announced Nov. 6

JCC price
Exchange rate
JCC price
Exchange rate
JCC price
Exchange rate
JCC price
Exchange rate
JCC price
Exchange rate

JCC price：($/bbl)、 Exchange rate：(￥/$)

23

1Q - 2Q

3Q

65.08
119.97115.39105.20
40.00
90.00
54.04
93.36
56.83
96.36

76.95
114.7496.78
103.73

4Q

91.58
109.18
48.06
91.81
40.00
90.00
60.00
90.00
70.00
90.00

1Q - 4Q

76.21
114.6689.71
102.56
40.00
90.00
57.38
91.39
64.31
92.43

forecasts

Revised estimate sales of crude oil for fiscal year ending March 31, 2010
(YoY comparison)

Crude Oil:

FY2008FY2009(a)(a)

FY2010 Revised estimate announced Nov.6

1H

2H

(a)

(e)

Full(1Q-4Q)(e)

YoY change

Sales volume[thousand KL]

2,450

2,337

967

1,156

2,123

( 214)Net sales[Million ￥]128,391

115,933

33,00841,77574,783( 41,150)

JCC price ($/bbl)
Exchange rate (￥/USD)

76.21
114.6689.71
102.56

56.83
96.36

70.00
90.00

64.31
92.43

( 25.41)( 10.13)574
32,170569
30,974

250
9,394

323
12,689573
22,083

4( 8,891)

144
7,483

141
9,065

23
598

2
58

25
656

( 116)( 8,409)409
10,468417
13,087

188
4,140

213
5,276

401
9,416

( 16)
( 3,671)[ Breakdown of equity oil ]Domestically produced crude oil:Overseas subsidiary crude oil:

Bitumen:Sales volume[thousand KL]

Net sales[Million ￥]Sales volume[thousand KL]

Net sales[Million ￥]Sales volume[thousand KL]

Net sales[Million ￥]Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Sales volume and net sales of “Overseas subsidiary crude oil” are the sum totals of the sales volumes and net sales reported by two overseas
consolidated subsidiaries (Japex New Nanhai Ltd. and Japex (U.S.) Corp.).

24

forecasts

Revised estimate sales of natural gas for fiscal year ending March 31, 2010
(YoY comparison)

Natural gas:

FY2008FY2009(a)(a)

FY2010 Revised estimate announced Nov.6

1H

2H

(a)

(e)

Full(1Q-4Q)(e)

YoY change

Sales volume[Million M3]

1,486

1,485

643

826

1,469

( 16)

Net sales[Million ￥]48,982

54,12624,92429,31854,242

116

1,124

1,101

454

586

1,040

( 61)

Of which, domestically produced gas:
Sales volume[Million M3]

Sales volume of “domestically produced gas” stated herein does not include purchased gas.

Sales volume

YoY comparison： - 1.1％ below the year-ago level

Start of supply to new demand of natural gas for industrial use
Slowdown in industrial demand amid deteriorating economic conditions and decline in demand for large scaleutility customers

Net sales

YoY comparison： +0.2%, essentially unchanged

Less sales volume , lower selling prices based on pricing formula linked to LNG・CIF priceDifferential profit by price revisions of prior periods

25Consolidated financial estimates for the fiscal year ending March 31, 2010
Causes of income fluctuations (YoY comparison)

forecasts

 Revised estimate for the FY2010≪Causes of increase or decrease (MEMO)≫

FY09
1Q-4Q
(a)

FY10
1Q-4Q
(e)

YoY change

Net sales

202,127

173,148( 28,979)

Gross profit

67,68049,376( 18,304)[ Million yen ]Exploration expenses

15,352

9,605( 5,747)

SG&A expenses

32,237

31,777( 460)

Operating income

20,0907,994( 12,096)

Other income (expenses)

2,267

4,540

2,273

Ordinary income

22,35812,534( 9,824)Extraordinary income(losses)( 5,250)( 155)

5,095

3,565

2,633

( 932)

981

611( 370)

12,5609,135( 3,425)

Income taxes
Minority interests
Net income

26

Gross profit
Domestic crude oil and natural gas -¥7.2 billion
Overseas consolidated subsidiaries -¥ 9.8 billion(JACOS -3.1, Japex New Nanhai -6.4, JUS -0.2)
Exploration expenses
Domestic exploration
Overseas exploration+¥5.5 billion+¥0.1 billion

Other income (expenses)
Dividends income
Loss on valuation of securities
Provision for cost of abondonment
Foreign exchange losses-¥1.6 billion+¥1.7 billion+¥1.3 billion+¥1.2 billion

Extraordinary income (losses)(losses)
Impairment loss and loss on retirementof noncurrent assets of production wells +¥4.5 billion
Loss on retirement of noncurrent assets +¥0.5 billion

Estimated crude oil sales for the fiscal year ending March 31, 2010
(compared with August 7 estimate)

Crude Oil:

forecasts

comparedwith Aug.7
estimate

FY2010Initial estimate

FY2010
Revised estimate

announced May14 (e)announced Aug.7 (e)

2,194

2,132

967

1,156

2,123

( 10)

46,97068,47133,00841,77574,783

6,312

40.00
90.00

57.38
91.39

56.83
96.36

70.00
90.00

64.31
92.43

6.93
1.04

593

575

250

323

573

( 2)

13,843

19,614

9,394

12,68922,083

2,469[thousand KL]

21

26

23

2

25

( 0)

Net sales[Million￥]

470

673

598

58

656

( 17)

Sales volume[thousand KL]

Net sales[Million￥]

437
6,276

406
8,903

188
4,140

213
5,276

401
9,416

( 4)
513

Sales volume [thousand KL]
Net sales[Million ￥]JCC price (＄/bbl)
Exchange rate (￥/＄)FY2010 Revised estimate announced Nov 6

1H

2H

(a)

(e)

Full(1Q-4Q)(e)[ Breakdown of equity oil ]Domestically
produced crude oil:

Sales volume[thousand KL]

Net sales[Million￥]

Overseas subsidiary
Sales volume
crude oil:
Bitumen:Sales volume and net sales of “Domestically produced crude oil” stated herein do not include purchased crude oil.
Sales volume and net sales of “Overseas subsidiary crude oil” are the sum totals of the sales volumes and net sales reported by two
overseas consolidated subsidiaries (Japex New Nanhai Ltd. and Japex (U.S.) Corp.).

27

forecasts

Revised estimate sales of natural gas for fiscal year ending March 31, 2010
(compared with August 7 estimate)
FY2010Initial estimate

FY2010
Revised estimate

announced May14 (e)announced Aug.7 (e)Sales volume [Million M3]

1,545

1,508

643

[Million ￥]53,41555,604

Of which, domestically produced gas:
Sales volume [Million M3]

1,128

1,071

Natural gas:

Net sales( 40)

24,92429,31854,242( 1,362)

454

586

1,040

( 31)

(a)

(e)

Decreased 2.6% compared with August 7 estimate(Decreased 4.9% compared with initial estimate)

Decreased 2.4% compared with August 7 estimate

28

1,469

2H

Revised demand & supply plan reflecting 1Q-2Q sales results

Net sales

826

1H

Sales volume of “domestically produced gas” stated herein does not include purchased gas.

Sales volume

Full(1Q-4Q)(e)comparedwith Aug.7
estimate

FY2010 Revised estimate announced Nov.6

Consolidated financial estimates for the fiscal year ending March 31, 2010
Causes of income fluctuations (compared with August 7 estimate) Revised estimate for the FY2010[ Million￥ ]≪Causes of increase or decrease (MEMO)≫

FY2010
1Q-4Qchange inamountannounced Aug.7(e)announced Nov.6(e)

Net sales

153,422173,148

19,726Gross profit

48,07049,376

1,306

Exploration expenses

10,391

9,605( 786)

SG&A expenses

31,226

31,777552

Operating income

6,454

7,994

1,540

Other income (expenses)

4,295

4,540

245

Ordinary income

10,74812,534

1,785

Extraordinary income(losses)( 104)( 155)( 51)

Income taxes

2,440

2,633

193

460

611

151

7,744

9,135

1,391

Minority interests
Net income

forecasts

29

Gross profit
Domestic crude oil and natural gas+¥0.2 billion
Overseas consolidated subsidiaries+¥0.7 billion(JACOS +0.6, Japex New Nanhai +0.1)
Exploration expenses
Domestic exploration
Overseas exploration-¥0.3 billion+¥1.1 billion

SG&A expenses
SG&A and Goodwill for newly consolidated company

forecasts

Oil price and exchange rate assumptions in the fiscal year ending March 31, 2010
and impact on profits
1H(a)
(a)

FY2009
2H
(a)

1Q-4Q
(a)

FY2010
1Q(a)

1H
2Q(a)

1Q-2Q(a)

2H
(e)

1Q-4Q
(e)

JCC price($/bbl)115.39

69.07

89.71

47.92

65.88

56.83

70.00

64.31

Exchange rate(￥/$)

105.2099.01

102.56

97.69

95.37

96.36

90.00

92.43

Crude oil price assumption = $ 70 /bbl
$1/bbl increase in crude oil prices would
push profits up by…………

Operating income¥230 million

Net income¥140 million

Exchange rate assumption = ￥90/$

A weakening in the yen to ￥5/＄ would
push profits up by………

Operating income¥480 million

Net income¥300 million

Note: Since movements in bitumen selling
prices are often different frommovements in conventional crude oil
prices, the impact of crude oil prices
on oil sands business is not includedin the figures shown here.

Note: In addition to the impact of exchange
rate fluctuations shown on the left,translation adjustments of foreigncurrency- denominated receivables andpayables (except for those subject tohedge accounting) held by the Company
and its consolidated subsidiaries also
occur (unrealized gains (losses) arerecorded in other income (expenses )).

Bitumen price assumption = CAD 50 /bbl , JPY80/CAD
CAD46.60/bbl ［1H 42.10 (1Q:31.50+2Q:53.50)

1 CAD/bbl increase in bitumen prices
would push profits up by…

2H 3Q:51.10 4Q:50.00］

Operating income CAD 0.65million, ¥52 million
Net income

CAD 0.57million, ¥46 million

Note: The above figures are for reference purposes only.
Actual profits are influenced by a variety of other factors besides crude
crude oil prices and exchange rates.

30