Note: The following press release is an English translation of the Japanese-language original

June 17, 2016
Japan Petroleum Exploration Co., Ltd. (JAPEX)

Commencement of the Drilling Survey (Phase 3)
in Bandai District, Fukushima Prefecture for Geothermal Energy Development
The Fukushima Geothermal Project Team (the Team) has been conducting a surface survey ofgeothermal resources at the area around Mt. Bandai in the Bandai-Asahi National Park. This project
has been conducted since 2013, with the consent of local communities and the financial support
from Japan Oil, Gas and Metals National Corporation (JOGMEC). As the Team completed thethree-year surface survey and confirmed a promising area to be developed, it will move onto thenext phase; drilling survey in the area.
The Team consists of 11 companies: Idemitsu Kosan Co.,Ltd., INPEX CORPORATION,
Sumitomo Corporation, Japan Petroleum Exploration Co., Ltd., Geothermal Energy Research &Development Co., Ltd., Japan Metals & Chemicals Co., Ltd., Mitsui Oil Exploration Co., Ltd.,
Mitsubishi Gas Chemical Company, Inc., Mitsubishi Corporation, Mitsubishi Corporation Power
Ltd., and Mitsubishi Materials Corporation.
1.

Purpose and outline of the Drilling Survey
The Team will drill two survey wells (directional) to investigate underground temperature,geological structure, and the presence of reservoir as the 3rd Phase of geothermal survey.

2.

Outline of the Geothermal Resource Survey(1) Phase 1 (completed in FY2013)
Surface study to propose hot spring monitoring (e.g. survey for hot spring sources, andgeochemical analysis of fluids)(2) Phase 2 (completed in FY2015)
Surface study to estimate the underground structure (e.g. survey for hot spring monitoringand observation of micro-earthquakes)(3) Phase 3 (FY2016 to 2017 (planned))
See Item 1 above.

3.

A Schedule for Drilling Survey (Phase 3) (FY2016)
ActionAprMayJunJulAug

SepOctNovDec

Preparation for drilling
Site arrangement
Rig upBD-1 ⇒ Rig Slide ⇒ BD-2

Drilling
Rig down
Monitoring of hot springs
Observation ofmicro-earthquakes
Summarizing data

The schedule shown above is subject to change.

JanFebMar4.

Schedule of the study
Based on the result of drilling survey, the Team will set up a plan for drilling development
wells and present the plan to the local communities. Under the consent of the localcommunities, the Team will decide to move forward to the feasibility study. In this study, adrilling of geothermal fluid production wells, a drilling of re-injection wells, a demonstrative
test, and an environmental assessment will be conducted.

Scene of the ceremony to pray for the safety of the drilling survey held on-site today

For inquiries regarding this press release, please contact:
Idemitsu Kosan Co., Ltd.
Tel: +81-3-3213-3115
Japan Petroleum Exploration Co., Ltd.
Tel: +81-3-6268-7110

[Reference]
Drilling site information
SiteDescription
Address
Tsuchiyusawayama, Inawashiro-machi, Yama-Gun, Fukushima PrefectureOwnerInawashiro Property Ward
Status• Access to the site is prohibited as it is controlled by the Inawashiro Property Ward.
• Although a tour of the site during the drilling survey is planned, it is not allowed toenter the site for security and safety reasons.
A Drilling plan for Exploration wells
DrillingNo.
Directionsite
BD-1

BD-2

Well data

Approximately 10
degrees west from
Inawashiro southern direction
Property
Approximately 70
Warddegrees west fromsouthern direction

Diameter: 8.5 inches (21.59 cm)
Drilling depth: 2,300 m (maximum)
Vertical depth: 1,900 m (maximum)
Deviation: 1,150 m (maximum)

Survey area and location of the exploration wells

BD-2
BD-1

▲
Mt. Bandai

LegendSurvey area
WellHot spring
Fumarolic gas
Bandai-Asahi National Park
Special sanctuary
Type 1 conservation area
Type 2 conservation area
Type 3 conservation area
Ordinary area