May 10, 2013 Note: The following report is a summary of the Japanese-language original. Company name:  Japan Petroleum Exploration Co., Ltd. Listing: Tokyo Stock Exchange, First Section Securities code: 1662 URL: http://www.japex.co.jp/ President: Osamu Watanabe Inquiries: Shoji Mihara, General Manager, Media and Investor Relations Department TEL: +81-3-6268-7110 (from overseas) Scheduled date of ordinary general shareholders' meeting: June 25, 2013 Scheduled date to commence dividend payments: June 26, 2013 Scheduled date to file Securities Report: June 26, 2013 Presentation of supplementary material on financial results: Yes Holding of financial results presentation meeting (for analysts and institutional investors):    Yes (Millions of yen with fractional amounts discarded, unless otherwise noted)
Consolidated financial results for the fiscal year ended March 31, 2013 1. (April 1, 2012 – March 31, 2013)
Consolidated financial forecasts for the fiscal year ending March 31, 2014 (April 1, 2013 – March 31, 2014) 3.
* Notes Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting (1) in the change in scope of consolidation): Yes Newly included: JAPEX Montney Ltd. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial (2) statements after error corrections 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: Yes c. d. Restatement of prior period financial statements after error corrections: None (4) a. b. c. Number of issued shares (common stock) Total number of issued shares at the end of the period (including treasury stock) As of March 31, 2013 As of March 31, 2012 Number of treasury shares at the end of the period As of March 31, 2013 As of March 31, 2012 Average number of shares during the period Fiscal year ended March 31, 2013 Fiscal year ended March 31, 2012 57,154,776 shares 57,154,776 shares 2,139 shares 2,139 shares 57,152,637 shares 57,152,657 shares
Reference: Summary of non-consolidated results

Non-consolidated financial results for the fiscal year ended March 31, 2013 1. (April 1, 2012 – March 31, 2013)
* Indication regarding execution of audit procedures At the time of disclosure of this financial results report, the audit procedures for the 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 the section of "(1) Analysis of operating results" of "1. Analysis of operating results and financial position" on page 4 of the attached material to the financial results report.
(Method of accessing supplementary material on financial results)
On May 10, 2013 (Friday), JAPEX plans to post supplementary material on its website. In addition, JAPEX plans to hold a presentation meeting for institutional investors and analysts on May 13, 2013 (Monday). JAPEX plans to post the material distributed at this presentation meeting on its website promptly after the meeting is held. (Significant impairment loss on noncurrent assets) Owing to a decline in production capacity at the Yufutsu Oil and Gas Field in Tomakomai City, Hokkaido, the Company reduced the book value of the business assets for production operation at the Oil and Gas Field to their recoverable value and posted an impairment loss of ¥37,031 million in the six months ended September 30, 2012.
1. Analysis of operating results and financial position
(1) Analysis of operating results
In the fiscal year ended March 31, 2013, the Japanese economy showed signs of recovery up to the end of the summer mainly on the back of demand related to reconstruction after the Great East Japan Earthquake. Although the economy subsequently weakened due to declines in exports and production amid a global economic slowdown, signs of a moderate return to recovery were seen at the fiscal year-end. The Japan Crude Cocktail (JCC) price began the fiscal year at the high level of $120 per barrel, but fell to the $100 level in July. Although the price rose again to reach the $115 level, following that it hovered loosely in the lower $110 range. In the currency exchange market, in continuation from the previous fiscal year, the yen started the fiscal year ended March 31, 2013 at the strong level of about ¥80 against the US dollar and continued. In December, however, the yen began to depreciate, and fell to the higher ¥90 range at the fiscal year-end. As a result, the JAPEX Group's crude oil prices in terms of the average for the fiscal year rose slightly compared with the previous fiscal year. On the other hand, in addition to persistently high demand for liquefied natural gas (LNG) as a fuel for electricity generation following the Great East Japan Earthquake, procuring gas for use in other industrial sectors and for consumer use remained difficult, particularly in terms of pricing, while industry trends in relation to the development of supply infrastructure continued to move forward. As a result, the JAPEX Group faced an uncertain market environment. Given this environment, the JAPEX Group endeavored to secure production and transportation, and focused on efficient E&P in Japan and overseas toward achieving a stable, long-term supply of energy essential for daily life. During the fiscal year under review, net sales was at ¥231,086 million, an increase of ¥448 million (+0.2%) year on year, and gross profit was at ¥59,010 million, an increase of ¥2,732 million (+4.9%) year on year. One of the main factors behind the year-on-year increase in profit was an increase in receipt of transportation fee of natural gas. Exploration expenses increased by ¥5,280 million (+67.6%) year on year to ¥13,086 million. This was the result of increases in overseas expenditures in Canada and Indonesia as well as a considerable increase in expenditures in Japan, mainly for exploration operations in Hokkaido and Niigata Prefecture. On the other hand, selling, general and administrative expenses decreased by ¥1,409 million (-4.2%) year on year to ¥32,017 million. As a result, operating income declined by ¥1,139 million (-7.6%) year on year to ¥13,906 million. Ordinary income increased ¥5,922 million (+26.7%) year on year to ¥28,082 million, primarily as a result of an increase in dividends income, as well as the respective turnarounds from equity in losses of affiliates and foreign exchange losses in the previous fiscal year to equity in earnings of affiliates and foreign exchange gains. Loss before income taxes and minority interests was ¥6,439 million, a ¥28,910 million profit decline year on year. Although gain on transfer of mining rights by assignment of working interest pertaining to bitumen of Japan Canada Oil Sands Limited (JACOS) was recorded in extraordinary income, this was outweighed by other items including the posting under extraordinary loss of impairment loss on business assets for production operation at the Yufutsu Oil and Gas Field in Hokkaido, due to a decline in production capacity at the Oil and Gas Field. Net loss was ¥865 million, a ¥17,892 million profit decline year on year. This was the result of a decline in deferred income taxes mainly due to the recording of deferred tax assets in line with the above-mentioned posting of impairment loss. Below is a breakdown of sales.
(i) E&P
Net sales from E&P (including liquefied natural gas (LNG) and bitumen) came to ¥177,423 million, a decrease of ¥3,356 million (-1.9%) year on year. Although there were positive factors including a rise in natural gas sales prices, increase in LNG sales volume and a rise in LNG sales prices, these were outweighed by mainly a decline in natural gas sales volume. (ii) Contract Services Net sales from contract services (involved in drilling and geological surveys) came to ¥9,674 million, an increase of ¥1,314 million (+15.7%) 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 and oil products as well as other subcontracted tasks, came to ¥43,988 million, an increase of ¥2,490 million (+6.0%) year on year due mainly to an increase in receipt of transportation fee of natural gas. Below is a summary of performance by segment. Effective from the fiscal year under review, "Middle East" is disclosed as a reportable segment. (1) Japan Net sales from the Japan segment are mainly composed of E&P (including LNG), contract services, and oil products and the like. During the fiscal year under review, net sales was at ¥221,105 million, a decrease of ¥246 million (-0.1%) year on year. Although an increase in natural gas sale prices, increases in LNG sales volume and sale prices, and an increase in receipt of transportation fee of natural gas had positive impacts, they were outweighed by negative factors including a decline in natural gas sales volume. Segment profit came to ¥26,015 million, a sharp upward turnaround of ¥2,036 million (+8.5%) year on year. Although there were negative factors including an increase in exploration expenses, these were outweighed by the above-mentioned increase in receipt of transportation fee of natural gas, a decline in cost of sales mainly due to decreases in depreciation and amortization and variable costs, and a decline in selling, general and administrative expenses.
(2) North America
Net sales from the North America segment are mainly composed of E&P (including bitumen). During the fiscal year under review, net sales was at ¥9,996 million, an increase of ¥698 million (+7.5%) year on year. Although a decrease in production volumes due to scheduled inspection of bitumen facilities, etc. mainly at JACOS had a negative impact, this was outweighed by positive factors including yen depreciation. There was segment loss of ¥191 million (compared to segment profit of ¥1,244 million in the previous fiscal year) primarily due to an increase in exploration expenses mainly at JACOS.
(3) Middle East
Operations in the Middle East segment are composed of development of the Garraf oilfield in Iraq with the aim of starting commercial production. During the fiscal year under review, there was segment loss of ¥104 million (compared to segment loss of ¥118 million in the previous fiscal year).
Outlook for the fiscal year ending March 31, 2014
Our forecast is based on a JCC price of $100 per barrel and an exchange rate of ¥90/$. Actual non-consolidated results for the fiscal year under review came to $114.67 per barrel and ¥81.71/$. Net sales for the fiscal year ending March 31, 2014 is expected to increase by ¥1,606 million (+0.7%) from the fiscal year under review to ¥232,692 million. Although we expect declines in sales volumes and prices for products including domestically produced crude oil and oil products, we expect these to be outweighed by an increase in sales of crude oil from overseas. Ordinary income is forecast to increase ¥6,815 million (+49.0%) from the fiscal year under review to ¥20,722 million. This is because we expect a decrease in depreciation and amortization resulting from the posting under extraordinary loss of impairment loss on business assets for production operation at the Yufutsu Oil and Gas Field in the fiscal year under review, in addition to a decrease in overseas exploration expenses. Ordinary income is forecast to increase ¥701 million (+2.5%) from the fiscal year under review to ¥28,783 million, with the smaller increase reflecting an expected decline in dividends income. Net income is expected to increase ¥22,377 million from the fiscal year under review to ¥21,511 million, mainly because the above-mentioned impairment loss will no longer be a factor.
(2) Analysis of financial position
a. Balance sheet
Total assets at the end of this fiscal year stood at ¥525,172 million, a decrease of ¥7,717 million (-1.4%) year on year. Of this, current assets increased ¥23,591 million (+14.3%) to ¥188,645 million, and noncurrent assets fell ¥31,309 million (-8.5%) to ¥336,526 million. The main changes in current assets were an increase in cash and deposits, an increase in notes and accounts receivable-trade, an increase in securities for short-term investment, an increase in raw materials and supplies, and a decrease in short-term loans receivable based on repo transactions. In noncurrent assets, property, plant and equipment decreased by ¥42,175 million (-31.7%), mainly due to the posting of the above-mentioned impairment loss on business assets for production operation at the Yufutsu Oil and Gas Field in Hokkaido. Investments and other assets increased by ¥7,628 million (+3.3%), despite a decrease in investment securities owing to a fall in the stock prices of INPEX CORPORATION and others. This was the result of an increase in long-term loans receivable extended to Kangean Energy Indonesia Ltd. (KEI) and EMP Exploration (Kangean) Ltd. (EMPE), both of which are equity-method affiliates, an increase in deferred tax assets, and an increase in the investments relating to development of the Garraf oilfield in Iraq. Total year-end liabilities decreased by ¥4,570 million (-3.6%) year on year to ¥121,547 million, despite an increase in notes and accounts payable-trade. This was mainly the result of a reduction in loans payable due to repayment of long-term loans payable and a decline in deferred tax liabilities due to the above-mentioned decrease in investment securities. Total year-end net assets decreased by ¥3,147 million (-0.8%) year on year to ¥403,625 million, mainly due to declines in retained earnings and valuation difference on available-for-sale securities, despite rises in foreign currency translation adjustment and minority interests from a third-party allocation of new shares by consolidated subsidiary Japex Garraf Ltd. As a result, the equity ratio at March 31, 2013 was 72.8%. b. Cash flows As of March 31, 2013, cash and cash equivalents (hereinafter, "net cash") totaled ¥112,639 million, up ¥12,836 million, compared to the end of the previous fiscal year. Below is a summary of cash flows for each activity. (Net cash provided by (used in) operating activities) Net cash provided by operating activities amounted to ¥34,254 million. The main factors were ¥6,439 million in loss before income taxes and minority interests, ¥16,294 million in depreciation and amortization, ¥37,094 million in impairment loss, ¥11,713 million in interest and dividends income, ¥8,957 million difference between notes and accounts payable-trade and notes and accounts receivable-trade, ¥2,829 million in gain on transfer of mining rights, and ¥5,125 million in income taxes paid. (Net cash provided by (used in) investing activities) Net cash used in investing activities amounted to ¥14,836 million. This is because the main uses, namely ¥18,124 million for payments into time deposits, ¥10,195 million for purchase of property, plant and equipment, ¥5,623 million for purchase of investment securities, ¥12,061 million for payments of recoverable accounts and ¥4,061 million for payments of loans receivable, exceeded increasing factors such as ¥15,784 million in proceeds from withdrawal of time deposits, ¥3,300 million in proceeds from sales and redemption of securities, ¥2,446 million in proceeds from sales and redemption of investment securities, and ¥12,844 million in interest and dividends income received. (Net cash provided by (used in) financing activities) Net cash used in financing activities was ¥7,177 million. This is because the main uses, such as ¥11,141 million for repayment of long-term loans payable and ¥2,286 million for cash dividends paid, exceeded the increasing factors, namely ¥1,875 million in proceeds from long-term loans payable for the procurement of funds to be directed for loans to KEI and EMPE and ¥5,428 million in proceeds from stock issuance to minority shareholders from a third-party allocation of new shares by consolidated subsidiary Japex Garraf Ltd.
Equity ratio on mark-to-market basis: Total market capitalization/Total assets Interest-bearing debt to cash flow ratio: Interest-bearing debt/Cash flows Interest coverage ratio: Cash flow/Interest paid Notes: *1. The above indicators are calculated based on consolidated financial figures. *2. Total market capitalization is calculated based on the number of shares outstanding (excluding treasury stock). 4.2 Cash flow here is net cash provided by operating activities. *4. Interest-bearing debt is all debt subject to interest payments within liabilities (excluding lease obligations) shown on the consolidated balance sheets.
(3)
Fundamental policy on allocation of profits and dividends for this year and next year
JAPEX's basic policy is to sustain stable dividends over the long term. Taking into account the medium and long-term outlook for the business, dividend payments are set based on respect for the return of profits to shareholders. While considering the need to secure new reserves as an energy company that plays a role in providing stable supplies of oil and natural gas, indispensable resources for society, the policy also takes into account the need for retained earnings to finance the replacement of reserves and to upgrade and improve transportation systems, primarily pipelines. Based on the above policy, an annual dividend of ¥40 per share (¥20 yen per share interim dividend and ¥20 yen per share year-end dividend) is planned for the current fiscal year. With the aim of enhancing returns to shareholders, an annual dividend of ¥50 per share (¥25 yen per share interim dividend and ¥25 yen per share year-end dividend) is planned for the next fiscal year, increasing the annual amount by ¥10 per share.
(4)
Risk Factors
Of the risk factors described in the Company's latest Annual Securities Report (submitted on June 27, 2012), in "(1) Business Characteristics, 3.Business Risks, 4. Risk Factors, 2. Operating and Financial Review and Prospects of 1. Overview of JAPEX and Its Subsidiaries," the following matter is described in the note on page 3 of this report as a matter that may have a material impact on investment decisions: in the six months ended September 30, 2012, owing to a decline in production capacity at the Yufutsu Oil and Gas Field in Tomakomai City, Hokkaido, the Company reduced the book value of the business assets for production operation at the Oil and Gas Field to their recoverable value and posted an impairment loss of ¥37,031 million.
2. Business policies
(1) Fundamental business policies
Since its establishment in 1955, JAPEX has pursued its mission of contributing to Japan's energy supplies by securing reserves and expanding production centered on the exploration, development, and sale of oil and natural gas. Guided by this mission, JAPEX has steadily discovered oil and natural gas reserves to result in the business base of today. In light of its expanding role as a supplier and, consequently, related increases in its responsibility to society with regard to a stable supply, the JAPEX Group is actively focused on constructing a new business model that not only relies on expanding reserves but also upgrading and expanding transportation systems for natural gas and other initiatives. As such, the Group aims to move forward as a company with the competitive capabilities required to respond to changes in its operating environment. The section below outlines the Group's business philosophy in this respect. Taking on the challenge of new energy value creation and increasing corporate value • Contribute to the supply of energy through global exploration and production (E&P) activities. • Contribute to coexistence between the planet and humankind by developing and promoting the use of environment-friendly natural gas. • Pursue sustainable growth and maximize shareholder value by placing top priority on winning and maintaining the trust of society, customers, shareholders and employees.
(2)  Medium- and long-term business strategy and critical issues
The replacement and expansion of reserves, which are depleted by production and sales activities, and the formulation of a supply structure of oil and natural gas that would ensure long-term stability is of paramount importance to JAPEX, a company whose business is centered on exploration, development and sales of these resources. Additionally, with factors such as intensification in the competitive environment for the domestic natural gas business and changes in social conditions marked by an increase in the importance of global warming countermeasures, the business environment encompassing JAPEX is undergoing a rapid transformation. JAPEX, under the policy of its previous mid-term plan, has been working on establishing a clear action plan for the attainment of important business challenges over the long term by setting the following three activities as core business objectives; "Sustaining and increasing reserves through exploration and development," "Strengthening our natural gas integrated operation system" and "Pursuing technological R&D activities and initiatives to address global environmental challenges." Furthermore, on May 2011, JAPEX announced a new medium-term plan that, while continuously positioning the above-mentioned three activities as the three basic policies for the purpose of the Company's business expansion, particularly positions "Sustaining and increasing reserves through exploration and development" (E&P business) as the core for future growth and focuses on shifting investment to overseas in the E&P business. Details and subsequent progress of the JAPEX Group Medium-Term Business Plan (for fiscal years 2012 to 2016) released on May 13, 2011 may be accessed with the following URLs in our Website. http://www.japex.co.jp/english/newsrelease/pdf/JAPEX_20110513c.pdf "Notice of the Medium-Term Business Plan of the JAPEX Group" (English translation of original Japanese text) http://www.japex.co.jp/english/ir/pdf/library/JAPEX_Presentation_20120514_E.pdf "Presentation of Consolidated financial results for the fiscal year ended March 31, 2012" (English translation of original Japanese text) In the new Medium-Term Business Plan, JAPEX, mindful of the growing trend towards unstable energy prices and intensifying competition for the development of global resources, aims to achieve further business growth by conducting overseas E&P investment to expand business opportunities and increase reserves while at the same time ensuring the maximization of the value of existing assets in Japan and overseas. Below are the policies and goals by each business. (E&P business) During the five year period from the beginning of the fiscal year ended March 31, 2012 to the end of the fiscal year ending March 31, 2016, JAPEX will shift investment to overseas in the E&P business, aiming to allocate 60% of the ¥280,000 million total investment budgets (¥170,000 million) to overseas investments. By pursuing this policy, JAPEX will be able to increase its consolidated daily production to 70,000 barrels by the end of the fiscal year ending March 31, 2016, from the current 40,000 barrels of daily production. In addition, by re-investing the cash flows provided by production, JAPEX aims to expand the proved reserves to 450 million barrels of crude oil equivalent by fiscal year ending March 31, 2021. (Domestic natural gas business) Although not quantitative targets have been set for sales volumes, etc, because of the uncertain business environment, JAPEX, aiming to contribute to the continuing and growing use of natural gas, will concentrate its efforts on the generation of new demand, development of infrastructure and facilities and the adjustment of sales prices to appropriate levels. (Environment and innovative technology projects) While stepping up efforts in large projects such as for methane hydrate and Carbon dioxide Capture and Storage (CCS), JAPEX will be the pioneering developer in renewable energy and other new fields. JAPEX aims to make those fields a commercial business by the end of the fiscal year ending March 31, 2016. The JAPEX Group aims to utilize these activities to further strengthen its operating base and enhance its competitiveness as well as bolster operating efficiency. The ultimate goal is to achieve sustainable development and maximize shareholder value.
3. Consolidated financial statements

4. Others
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.