February 5, 2016 Note: The following report is a summary of the Japanese-language original. Company name:  Japan Petroleum Exploration Co., Ltd. Tokyo Stock Exchange, First Section Listing: Securities code: 1662 URL: http://ww.japex.co.jp/ President: Osamu Watanabe Inquiries: Samdeck Nakamoto, General Manager, Media and Investor Relations Department TEL: +81-3-6268-7110 (from overseas) Scheduled date to file Quarterly Report: February 10, 2016 Scheduled date to commence dividend payments: To be determined Presentation of supplementary material on quarterly financial results:   Yes Holding of quarterly financial results presentation meeting (for analysts and institutional investors):   None (Millions of yen with fractional amounts discarded, unless otherwise noted)
1. Consolidated financial results for the nine months ended December 31, 2015 (April 1, 2015 – December 31, 2015)
Nine months ended December 31, 2014:    32,617 million yen  (9.8 %)
3. Consolidated financial forecasts for the fiscal year ending March 31, 2016 (April 1, 2015 – March 31, 2016)
※ (1) Notes Changes in significant subsidiaries during the nine months under review (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Application of specific accounting for preparing quarterly consolidated financial statements: Yes Note:  For details, please refer to "(2) Application of specific accounting for preparing quarterly consolidated financial statements" of "2. Matters regarding summary information (notes)" on page 4 of the attached material. (3) Changes in accounting policies, changes in accounting estimates, and restatement Changes in accounting policies due to revisions to accounting standards and other regulations: Yes a. Changes in accounting policies due to other reasons: None b. Changes in accounting estimates: None c. Restatement: None d. Note:  For details, please refer to "(3) Changes in accounting policies, changes in accounting estimates, and restatement" of "2. Matters regarding summary information (notes)" on page 4 of the attached material. (4) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) a. As of December 31, 2015 57,154,776 shares As of March 31, 2015 57,154,776 shares Number of treasury shares at the end of the period b. As of December 31, 2015 2,139 shares As of March 31, 2015 2,139 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) c. Nine months ended December 31, 2015 57,152,637 shares Nine months ended December 31, 2014 57,152,637 shares * Indication regarding execution of quarterly review procedures At the time of disclosure of this quarterly financial results report, the quarterly review procedures for the quarterly consolidated financial statements in accordance with the Financial Instruments and Exchange Act are in progress. * Proper use of financial forecasts and other special matters The forward-looking statements, including the financial forecasts shown in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may differ materially from these forecasts due to various factors. For the suppositions that form the assumptions for financial forecasts and cautions concerning the use thereof, please refer to "(3) Explanation of consolidated financial forecasts and other forward-looking statements" of "1. Qualitative information regarding settlement of accounts for the nine months ended December 31, 2015" on page 4 of the attached material to the quarterly financial results report. (Method of accessing supplementary material on quarterly financial results) On February 5, 2016 (Friday), JAPEX plans to post supplementary material on its website.
(Attached Material)
1. Qualitative information regarding settlement of accounts for the nine months ended December 31, 2015 (1) Explanation of operating results During the nine months ended December 31, 2015, net sales was at ¥187,402 million, a decrease of ¥42,028 million (-18.3%) year on year. Gross profit decreased by ¥15,216 million (-28.9%) year on year to ¥37,465 million. The main factors behind the year-on-year decreases in net sales and gross profit were falls in sales prices of domestically produced crude oil, overseas crude oil and natural gas, and a decrease in sales volume of domestically produced crude oil. Exploration expenses increased by ¥2,152 million (+51.5%) year on year to ¥6,335 million. This was the result of a considerable increase in overseas expenditures. Selling, general and administrative expenses decreased by ¥395 million (-1.6%) year on year to ¥24,221 million. As a result, operating income decreased by ¥16,972 million (-71.1%) year on year to ¥6,907 million. Ordinary income amounted to ¥6,686 million, a decrease of ¥33,887 million (-83.5%) year on year. This was mainly because of a decrease in share of profit of entities accounted for using equity method, and the turnaround from foreign exchange gains in the same period of the previous fiscal year to foreign exchange losses. Income before income taxes decreased by ¥33,903 million (-83.6%) year on year to ¥6,658 million. Profit attributable to owners of parent came to ¥6,368 million, a decrease of ¥22,974 million (-78.3%) year on year. Below is a breakdown of sales. (i) E&P Net sales from E&P (including liquefied natural gas (LNG) and bitumen) came to ¥148,846 million, a decrease of ¥37,842 million (-20.3%) year on year. This was mainly the result of fall in sales price and a decrease in sales volume of domestically produced crude oil. (ii) Contract Services Net sales from contract services (involves drilling and geological surveys) came to ¥7,379 million, an increase of ¥1,101 million (+17.5%) year on year. (iii)Other Businesses Net sales from other businesses, such as the sale of oil products, including liquefied petroleum gas (LPG), fuel oil and the like, the transportation of natural gas, etc., as well as other subcontracted tasks, came to ¥31,177 million, a decrease of ¥5,287 million (-14.5%) year on year.
(2) Explanation of financial position
At the end of the third quarter, as compared to the end of the previous fiscal year, total assets increased by ¥13,979 million to ¥750,842 million. The main factor behind this increase was an increase of ¥31,775 million in total property, plant and equipment partly due to an increase in construction in progress, despite a decrease of ¥1,984 million in total current assets partly due to a decrease in short-term loans payable (other under current liabilities), and a decrease of ¥ 15,536 million in total investments and other assets partly due to a decrease in investment securities. Total liabilities increased by ¥26,767 million from the previous fiscal year-end to ¥222,981 million. The main factor behind this increase was an increase of ¥100,497 million in total non-current liabilities partly due to an increase in long-term loans payable, despite a decrease of ¥73,730 million in total current liabilities partly due to a decrease in short-term loans payable. Total net assets decreased by ¥12,787 million from the previous fiscal year-end to ¥527,860 million. The main factor behind this decrease was a decrease of ¥10,865 million in valuation difference on available-for-sale securities, and a decrease of ¥2,393 million in foreign currency translation adjustment, despite an increase of ¥3,510 million in retained earnings.
(3) Explanation of consolidated financial forecasts and other forward-looking statements
JAPEX expects that the consolidated financial forecasts for net sales, ordinary income and profit attributable to owners of parent for the fiscal year ending March 31, 2016 will be lower compared to the previous financial forecasts announced on November 6, 2015. Although net sales decreased due to fall of oil prices, operating income is expected to stay about the same as in previous consolidated financial forecasts due mainly to a decrease in exploration expenses. On the other hand, ordinary income and profit attributable to owners of parent are expected to decrease due mainly to changes in foreign exchange losses and an increase in taxes. For our revised consolidated financial forecasts, the Japan Crude Cocktail (JCC) price expectation for the fourth quarter (January 2016 to March 2016) was changed to $36 per barrel, from $50 per barrel as in the previously announced financial forecast. The foreign exchange rate assumptions remain unchanged at ¥120/$. Please refer to the "Notice of Financial Forecast Revision" released on February 5, 2016, the same day of this report. 2. Matters regarding summary information (notes) (1) Changes in significant subsidiaries during the nine months under review No item to report (2) Application of specific accounting for preparing quarterly consolidated financial statements a. Deferral accounting of cost variance Cost variance arising from seasonal changes in production level is deferred as current assets (other) and current liabilities (other) because such variance is expected to be almost completely eliminated by the end of the cost accounting period. b. Calculation of taxes For the taxes, JAPEX and some of its consolidated subsidiaries compute first by reasonably estimating the effective tax rate after applying tax effect accounting against income before income taxes for the fiscal year including the third quarter, and next by multiplying the quarterly income before income taxes by such estimated effective tax rate. However, in cases where the calculation of taxes using such estimated effective tax rate yields a result that is not reasonable to a significant extent, the effective statutory tax rate is used. Note that income taxes - deferred is included in income taxes. (3) Changes in accounting policies, changes in accounting estimates, and restatement Changes in accounting policies (Application of Accounting Standard for Business Combinations, etc.) Effective from the first quarter ended June 30, 2015, the Company has applied the "Accounting Standard for Business Combinations" (ASBJ Statement No. 21, September 13, 2013), the "Accounting Standard for Consolidated Financial Statements" (ASBJ Statement No. 22, September 13, 2013), the "Accounting Standard for Business Divestitures" (ASBJ Statement No. 7, September 13, 2013), etc. As a result, the method of recording the amount of difference caused by changes in the Company's ownership interests in subsidiaries in the case of subsidiaries under ongoing control of the Company was changed to one in which it is recorded as capital surplus, and the method of recording acquisition-related costs was changed to one in which they are recognized as expenses for the fiscal year in which they are incurred. Furthermore, for business combinations carried out on or after the beginning of the first quarter ended June 30, 2015, the accounting method was changed to one in which the reviewed acquisition cost allocation resulting from the finalization of the provisional accounting treatment is reflected in the quarterly consolidated financial statements for the quarterly period to which the date of business combination belongs. In addition, the presentation method for "Net income" and other related items was changed, and the presentation of "Minority interests" was changed to "Non-controlling interests." To reflect these changes, the Company has reclassified its quarterly and full-year consolidated financial statements for the nine months of the previous fiscal year and the previous fiscal year. Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional measures provided for in paragraph 58-2 (4) of the Accounting Standard for Business Combinations, paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial Statements and paragraph 57-4 (4) of the Accounting Standard for Business Divestitures. The Company is applying the said standard, etc. prospectively from the beginning of the first quarter ended June 30, 2015. As a result of this change, the effect of these changes on operating income, ordinary income and income before income taxes for the nine months ended December 31, 2015 and on capital surplus at the end of the third quarter ended December 31, 2015 is immaterial.
(4) Additional information
(Changes to functional currency for foreign consolidated subsidiaries) From the third quarter ended December 31, 2015, Japan Canada Oil Sands Limited, a foreign consolidated subsidiary of the Company, has changed its functional currency from the Canadian dollar to the U.S. dollar.

(2) Consolidated quarterly statement of income and Consolidated quarterly statement of
comprehensive income

Consolidated quarterly statement of comprehensive income
(3) Notes to consolidated financial statements (Notes on premise of going concern) No item to report (Notes on significant changes in the amount of shareholders’ equity)
No item to report
4. Supplemental information
Status of production and sales

2. Part of the natural gas production volume is used as a feedstock for LNG. 3. Bitumen is a type of extra-heavy oil extracted from oil sands.
includes the transportation of natural gas and oil products as well as other subcontracted tasks. 2. Monetary amounts in the table do not include consumption taxes.