Note: The following press release is an English translation of the Japanese-language originalFebruary 7, 2014
Company Name: Japan Petroleum Exploration Co., Ltd.
Securities Code: 1662
President:
Osamu Watanabe
Inquiries:
Shoji Mihara, General Manager, Media and Investor Relations Department
TEL:+81-3-6268-7110
Notice of Financial Forecast Revision
and Recording of an Impairment Loss on Business Assets
Japan Petroleum Exploration Co., Ltd. (hereinafter "the Company") hereby announces that,based on its recent business performance, it has revised its consolidated full-year financial
forecast for the fiscal year ending March 31, 2014 (April 1, 2013 to March 31, 2014) announced
on May 10, 2013, as follows.
The Company also announces that it recorded an impairment loss (extraordinary loss) on
business assets for the settlement of accounts for the third quarter of the fiscal year ending
March 31, 2014.
1. Financial forecast revision（１） Revision to consolidated forecast for the fiscal year ending March 31, 2014
(April 1, 2013 – March 31, 2014)(Unit: ¥Million)
NetNet Icome
Incomeper ShareNet Sales

Operating
IncomeOrdinary
IncomePrevious forecast (A)232,692

20,722

28,78321,511¥376.39Revised forecast

272,802

21,54038,08324,089¥421.49

40,110

818

9,300

2,578

－

17.2

3.9

32.3

12.0

－

231,086

13,90628,082(865)(¥15.14)(B)

Change in amount (B- A)
Rate of change (%)(Reference)FY2013 Full Year（２） Reason for Revision：

The Company expects its consolidated financial forecasts for net sales, operating
income, ordinary income and net income in its consolidated full-year financial forecasts
ending March 31, 2014 to be higher compared to the previous consolidated financial
forecasts announced on May 10, 2013.
Net sales are expected to increase by 40,110 million yen, to 272,802 million yen, mainly
thanks to an increase in the sales price for crude oil and natural gas.
Operating income is expected to increase by 818 million yen, to 21,540 million yen, forthe reasons described above, somewhat offset by an increase in exploration costs and theposting of additional ARO (asset retirement obligations) upon a change in the estimates
thereof.
Ordinary income is expected to increase by 9,300 million yen, to 38,083 million yen,mainly thanks to the equity in earnings of affiliates and an increase in foreign exchange
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profits.
Net income is expected to increase by 2,578 million yen, to 24,089 million yen, withsome of the increase in net income being offset by the posting of an impairment loss (7,983
million yen) on the business assets described below.
2. Recording of an impairment loss on business assets
The Company decided to record as an extraordinary loss an impairment loss on
business assets for Yufutsu Oil and Gas Field (hereinafter “the Oil and Gas Field”) inTomakomai City, Hokkaido, for the third quarter of the fiscal year ending March 31,
2014 in the amount of 7,983 million yen.
Regarding the business assets described above, the Company recorded an impairment
loss of about 37,031 million yen for the second quarter of the fiscal year ended March 31,
2013 due to a decrease in the production capacity of the Oil and Gas Field. Since then theCompany has attempted to secure an appropriate production rate without placing aburden on the wells, is closely monitoring the production trends and otherwise ensuring
careful production operations to avoid a further decrease in production capacity.
However, after comprehensively considering the data on the production activity of theOil and Gas Field and the wells collected by December 2013, a further decrease in its
production capacity was seen, and the Company determined the need for an additional
downward revision to the estimated production.
Based on the estimated production above, the future cash flow for the Oil and Gas
Field was calculated, which fell below the book value of the business assets for theproduction operation. Therefore, the Company recorded an impairment loss of 7,983
million yen as an extraordinary loss after reducing the book value to the present value of
its future cash flow according to accounting standards.
The additional downward revision to the estimated production of the Oil and Gas Field
will not impair the stable supply of natural gas in Hokkaido for the long term, as a system
for supplying natural gas, including the Company’s Yufutsu LNG (liquefied natural gas)
receiving terminal, has already been established. The Oil and Gas Field will continue its
production operations as long as possible through further cost reduction to optimize theoperation system. Currently extention drilling has been conducting in the west of the Oil& Gas Field discovered as a result of exploration drilling, Akeno SK-1D well, in 2012. TheCompany will seek possibility of additional reserves around the Oil and Gas Field.
The Company has also been participating in the shale gas / LNG project in Canada
since April 2013. In addition, it made an FID (final investment decision) on construction
project of Soma LNG receiving terminal (in Shinchi Town, Fukushima Prefecture) toreceive the said LNG from Canada in November 2013. The Company will continue toexpand its natural gas business based in Yufutsu, Hokkaido, for the long term by securing
and supplying price-competitive natural gas in a stable manner.

(Note) The forward-looking statements in this document include projections based on our assumptions, outlook,and plans as of the date of publication of this document. Actual results may be different from thosestatements significantly.

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