Consolidated Financial Results for First Quarter Ended June 30, 2006
August 8, 2006
Note: The following report is a translation of the Japanese-language original.
Company Name: Japan Petroleum Exploration Co., Ltd.
(Company Code: 1662, First Section, Tokyo Stock Exchange)(URL: http://www.japex.co.jp/)
President: Yuji Tanahashi
Inquiries: Shigeyoshi Hasegawa, Manager, Media Relations, Media and Investor Relations Department
TEL: (03) 5461-7413
1. Notes Relating to Preparation of Quarterly Financial Statements(1) Use of simplified accounting procedures: Yes
Income taxes are calculated using an estimated annual income tax rate based on the statutory tax rate.
(2) Changes in accounting treatment from the most recent consolidated fiscal year: No(3) Changes in scope of consolidation and application of equity method: Yes
Consolidated (Added ): 2 companies
2. Consolidated Financial Results for First Quarter of Fiscal Year 2007 (April 1, 2006 – June 30, 2006)(1) Consolidated Operating Results (Amounts less than one million yen have been omitted)

1Q of FY07
1Q of FY06
（Ref.）FY06 Full YearNet Sales(¥ million)%
35,89038.2
25,96312.9138,796

Net Income per Share(¥)
1Q of FY07
1Q of FY06（Ref.）FY06 Full Year

Operating Income(¥ million)%
6,886 118.2
3,15588.8
27,018

Ordinary Income(¥ million)
%
8,799
51.7
5,799
36.1
31,190Net Income(¥ million)
%
5,909
48.7
3,973
10.0
20,216

Diluted Net Incomeper Share(¥)

103. 39
69. 51352. 11−−−(Notes)
1. Percentage figures for net sales, operating income and other items represent changes compared with the corresponding period of the previous fiscalyear.
2. Diluted net income per share is not shown because there are no shares with a dilutive effect.

Qualitative Information Concerning Consolidated Business Performance
In the first quarter ended June 30, 2006, consolidated net sales totaled ¥35,890 million, up 38.2%, from the same period of
the previous year. Operating income totaled ¥6,886 million, up 118.2%, from the same period of the previous year.
Ordinary income totaled ¥8,799 million, up 51.7%, from the same period of the previous year. Net income totaled ¥5,909
million, up 48.7%, from the same period of the previous year.
Below is a summary of earnings data for each of the Company’s business segments by division.
1. Oil and Natural Gas Segment(a) E&P Division
The E&P division sells crude oil, natural gas and liquefied natural gas (LNG). Net sales totaled ¥32,038 million, up
42.4%, from the same period of the previous year, reflecting increased sales of crude oil on the back of higher prices.
(b) Contract Services Division
The Contract Services Division accepts orders mainly for drilling projects and geological and geophysical surveys. Netsales totaled ¥556 million, up 22.8%, from the same period of the previous fiscal year, reflecting an increase in thevolume of drilling projects.
(c) Other Businesses DivisionThis division mainly includes the manufacturing and trading of products such as LPG and fuel oil, the transmission of
third-party gas, and other miscellaneous consignment orders. Net sales totaled ¥3,296 million, up 9.5%, from the same
period of the previous fiscal year, reflecting higher sales volume for products.
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(2) Consolidated Financial Position
Total Assets(¥ million)
532,631409,732
532,516

June 30, 2006
June 30, 2005
(Ref.) Mar. 31, 2006Shareholders’ Equity(¥ million)
399,267
305,264
386,222

Shareholders’ Equity
Ratio%
73.6
74.5
72.5

Shareholders’ Equity
per Share(¥)
6,862.96
5,341.10
6,756.00(3) Consolidated Cash Flows
Operating Activities

1Q of FY07
1Q of FY06
（Ref.）FY06 Full Year(¥ million)
2,325
7,224
32,850Investing Activities(¥ million)(4,890)(11,496)(20,063)

Financing Activities(¥ million)(406)(4,652)(6,088)Cash and Cash
Equivalents atPeriod-End(¥ million)
40,03725,81343,082

Qualitative Information Concerning Consolidated Financial Position
Property, plant and equipment increased ¥3,862 million, the result mainly of the construction of the Shiroishi-Koriyama
pipeline and drilling of production well. Fixed assets increased ¥6,762 million to ¥460,957 million, mainly reflecting anincrease in unrealized holding gain on securities. Currnet assets decreased ¥6,647 million to ¥71,674 million. Total assets
at June 30, 2005 stood at ¥532,631 million, an increase of ¥114 million from the previous fiscal year.
Current liabilities decreased ¥7,091 million, mainly reflecting a decrease accounts payable. Long-term liabilities increased¥1,923 million, mainly reflecting an increase in bank loans of ¥2,000 million. Total liabilities at June 30, 2005 stood at¥133,363 million, a decrease of ¥5,167 million from the previous fiscal year. Total shareholders’ equity and ratio stood at¥399,267 million and 73.6%, respectively.
As of June 30, 2006, Cash and cash equivalents on a consolidated basis stood at ¥40,037 million, a decrease of ¥3,045
million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Operating activities provided net cash of ¥2,325 million, mainly reflecting income before income taxes and minority
interests of ¥8,803 million, which outweighed income taxes of ¥6,943 million.
(Cash Flows from Investing Activities)
Investing activities used net cash of ¥4,890 million, primarily attributable to cash of ¥6,483 million used for the purchaseof property, plant and equipment.
(Cash Flows from Financing Activities)
Financing activities used net cash of ¥406 million, reflecting mainly inflows of ¥2,000 million of proceeds fromlong-term debt, and outflows of ¥1,404 million for the payment of cash dividends and ¥1,015 million for minoritys’ cash
dividends paid.

-2-3. Consolidated Forecast for Fiscal Year 2007(April 1, 2006 – March 31, 2007)
Net Sales

Ordinary Income

Net Income

Interim Period(¥ million)
66,038(¥ million)
13,784(¥ million)
9,473

Full Year Year-end

123,91024,92017,242Difference from previous consolidated interim period forcast (April 1, 2006 – September 30, 2006)
Net Sales

Ordinary Income

Net Income

Previous Forecast (A)(¥ million)
55,216(¥ million)
9,185(¥ million)
6,556

Revised Forecast (B)66,03813,784

9,473

Increase (B – A )10,822

4,599

2,917

Increase Ratio (%)

19.6%

50.1%

44.5%

(Ref.) FY06 Interim

59,221

12,4598,983

Note: The above estimates have been made based on information available as of the date of this release. Actual results may differ from these estimates
due to a variety of factors.

Qualitative Information Concerning Forecast
Mainly due to a rise in crude oil prices and highter sales volume of trading oil, the Company expects first half net sales torise ¥10.8billion, or 19.6% to ¥60.0billion, ordinary income for first half of ¥13.7billion, up ¥4.6billion, or 50.1% and net
income for first half of ¥9.4billion, up ¥2.9billion, or 44.5%, compared with consolidated financial results forecast
published in the Company’s consolidated financial results FY2006 released on May 15, 2006.
These forecasts were formulated on the following assumptions : 2nd quarter’s price of US$68/bbl for imported crude oiland 2nd quarter’s exchange rate of ¥115/US$.
The Company does not change full year forecast due to unclear of an outlook of crude oil price.
Reference :Non-consolidated Forcast for Fiscal Year 2007(April 1, 2006 – March 31, 2007)
Net Sales

Ordinary Income

Net Income

Interim Period(¥ million)
47,050(¥ million)
9,908(¥ million)
8,320

Full Year

98,118

17,79013,714

Difference from previous non-consolidated interim period forcast (April 1, 2006 – September 30, 2006)
Net Sales

Ordinary Income(¥ million)
6,196

Net Income

Previous Forecast (A)(¥ million)
43,895(¥ million)
5,660

Revised Forecast (B)47,050

9,908

8,320

Increase (B – A )

3,155

3,712

2,660

Increase Ratio (%)

7.2%

59.9%

47.0%

(Ref.) FY06 Interim

42,699

8,996

7,179

Note: The above estimates have been made based on information available as of the date of this release. Actual results may differ from these estimates
due to a variety of factors.

(Attached material)
A. Status of Production and Sales-3-A.Status of Production and Sales
１．Production(1) Oil and Natural Gas Segment
Division

1Q of FY 2007

Product

Apr. 1 – Jun. 30, 2006
CrudeLNG5,807

B i t u m e n

117,702(117,702)

LOtherBusinesses

PG

Fuel oil, etc.

2,504

t

13,252kl

805,612 kl（164,842）

292,933 thousand m3(15,151)t

5,411kl(Ref.) FY2006
Apr. 1, 2005 – Mar. 31, 2006

kl

196,673(43,525)

286,418 thousand m3(14,591)

Natural gas

E&P

kl

188,758(48,494)oil

1Q of FY2006
Apr. 1 –Jun. 30, 2005

1,279,066 thousand m3（62,335）t

25,901
kl

106,524(106,524)t449,785 kl(449,785)

2,680

t

10,737t13,826kl

55,719kl（Notes）
1. The figures in parentheses in E&P represent overseas production and are included in the total.
2. Part of the oil production volume is used as a feedstock for LPG, fuel oil and other products.
3. Part of the natural gas production volume is used as a feedstock for LNG, LPG.
4. Bitumen is a heavy oil extracted from oil sands. .

２．Sales(1)Oil and Natural Gas Segment
Division

1Q of FY2007
Apr. 1 – Jun. 30, 2006

Product

VolumeAmount
kl

Crude

Oil

407,608

Volume(¥ million)

19,325

E&P

308,455

304,747

N

G

9,570

33,213

Volume(¥million)

11,040313,490

1,485,849

9,413

24,212(¥million)

61,185thousand m3

1,413,717

t

1,747

Amountkl

thousand m3t

LAmountkl

thousand m3

Natural Gas（Ref.）FY2006
Apr. 1,2005 Mar. 31, 2006

1Q of FY2006
Apr.1 – Jun. 30, 2005

43,539t

1,210

124,7366,252kl

B i t u m e n

117,243

1,394

107,272836

448,951

6,526

Subtotal−

32,038−22,500−117,504−

556

−

452−

7,148

556

−

452−

Contract
services−

Subtotalt

LPG

5,900

(¥ million)

427

t

6,458

kl

OtherBusinesses(¥ million)

370

7,148
t

26,234kl(¥ million)

1,755
kl

Fueloil,etc

21,846

1,327

19,565

1,181

102,125

5,934

O t h e r s−

1,541

−

1,459−

6,453

Subtotal−

3,296

−

3,010

−

14,143

Total−

35,890−25,963−

138,796（Notes）
1. Others in Other Businesses includes revenue from the transmission of third-party gas through JAPEX’s pipeline network and salescommissions.
2. Monetary amounts in the tables do not include consumption tax.

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