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

November 8, 2016
Company Name: Japan Petroleum Exploration Co., Ltd.
Securities Code:

1662

President:

Hideichi Okada

Tel:+81-3-6268-7110

Inquiries:

Samdeck Nakamoto,General Manager, Media and Investor Relations Department

Notice of Financial Forecasts Revision
and Interim Dividend Payout and Year-end Dividend Forecast Revisions

Based on recent business performance, Japan Petroleum Exploration Co., Ltd. (hereinafter “JAPEX”)

hereby revised its consolidated financial forecasts announced on August 5, 2016 as below.

In addition, today its Board of Directors resolved the dividend payout from earnings (interim dividend) tothe shareholders of record on September 30, 2016 and revised its forecast of year-end dividend as follows.
1. Financial Forecasts Revision(1) Revision to consolidated forecasts for the fiscal year ending March 31, 2017
(FY2017/3; April 1, 2016 - March 31, 2017)

Net sales

Operatingincome(loss)

Ordinaryincome(loss)Net income(loss)
per share(Unit:
Millions of yen)

Profit (loss)
attributableto owners ofparent(Unit:Millions of yen)

(Unit:Millions of yen)

(Unit:
Millions of yen)

(Unit: yen)Previous forecasts (A)198,057

(549)

725

1,874

32.79

Revised forecasts (B)189,528(1,285)(3,725)

(341)

(597)

Difference in amount (B – A)

(8,529)(736)(4,450)(2,215)

-

(4.3)

---

-

240,302

8,336

4,652

2,090

36.58

Rate of change (%)(Reference) Results of FY 2016/3

Note: FY=Fiscal Year (FY2017/3, for instance, means 12 months ending March 31, 2017)(2) Reasons for Revision
By compared to the previous forecasts unveiled on August 5, 2016, net sales and operating loss areexpected to be lower, and ordinary income and profit attributable to owners of parent are expected to turn tolosses. The reasons of its revision are decrease in sales and profit due to decline of crude oil and gas prices,and expansion of the loss ranges by turning exchange gains to exchange losses due to the fluctuation of theexchange rates.
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(Reference)[Crude Oil (CIF: Cost, Insurance and Freight) Price]

Previous: 37.17 US$/bbl of the result from April to June, 2016

Revised:50.00 US$/bbl of the assumption from July, 2016 to March, 201737.17 US$/bbl of the result from April to June, 201645.92 US$/bbl of the result from July to September, 2016

45.00 US$/bbl of the assumption from October, 2016 to March, 2017
[Exchange Rate]

Previous: 110.71 yen/US$ of the result from April to June, 2016

Revised:105.00 yen/US$ of the assumption from July, 2016 to March, 2017110.71 yen/US$ of the result from April to June, 2016

105.32 yen/US$ of the result from July to September, 2016

100.00 yen/US$ of the assumption from October, 2016 to March, 2017
(Note) The aforementioned forecasts are based on management’s assumptions with information available at this time and theactual results may be different from the forecast figures because of various factors that could occur in the future.

2. Interim Dividend Payout and Year-end Dividend Forecast Revisions(1) Dividend Payout from Earnings (Interim Dividend) of the Fiscal Year ending March, 2017
Actual Result

Dividend Resolved

Latest Dividend Forecast

to be Distributed(announced on August 5, 2016)

September 30, 2016

September 30, 2016

September 30, 2015

Dividend per Share

5.00 yen

25.00 yen

25.00 yen

Total Cash Dividend285 million yen-

1,428 million yen

Payable Date

December 13, 2016

-December 2, 2015

Dividend Resource

Retained Earnings

Record Dateof Interim Dividend(2nd Quarter of FY2016/3)

Retained Earnings(2) Revision of Year-end Dividend Forecast of theFiscal Year ending March, 2017
Cash Dividend per Share
InterimYear-end

Total

Latest Dividend Forecast *25.00 yen

25.00 yen

50.00 yen

Revised Dividend Forecast-

Undetermined

Undetermined

Actual Dividend Result

5.00 yen--Previous Dividend Result **25.00 yen

25.00 yen

50.00 yen

* Announced on August 5, 2016** The fiscal year ended March 31, 2016 (FY2016/3)

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(3) Reasons for Revisions

JAPEX has the basic policy on profit distribution to maintain long-term and stable dividends forshareholders, and decided to set the price of dividend based on medium to long term business forecasts andretained earnings with regard to return our profit to the shareholders.

In this time, JAPEX has regrettably revised the interim dividend recorded September 30, 2016 to 5.00 yen
per share from 25.00 yen per share of the latest forecast due to significant downturn of its financial results
and forecasts. The year-end dividend forecast recorded March 31, 2017 will be announced right after thedecision considering our financial forecasts.

Seriously accepted the result of lower revisions of financial forecast and cutting the interim dividend,

JAPEX will consider and execute the measures of financial improvement such as the company-wide level

cost reductions including compensation reduction of directors and officers, sales of our portfolio assets, andothers. Furthermore, JAPEX will struggle for the transform of corporate structure to maintain the corporatesoundness even in low oil price environment, and pursue to enhance our corporate value.
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