JAPEX to Book Extraordinary Income from Participation in INPEX Off-Auction Own Share Repurchase Trading (ToSTNeT-3）(182.0 KB)

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

November 8, 2021

Company Name:	Japan Petroleum Exploration Co., Ltd. (JAPEX)
Securities Code:	1662 (First Section of the Tokyo Stock Exchange)
Representative:	FUJITA Masahiro, Representative Director and President
Inquiries:	Corporate Communication Office
TEL:	[phone]

JAPEX to Book Extraordinary Income

from Participation in INPEX Off-Auction Own Share Repurchase Trading (ToSTNeT-3）

Japan Petroleum Exploration Co., Ltd. (JAPEX) announced that it tendered a portion of the shares it owns in INPEX CORPORATION (INPEX) in an off-auction own share repurchase trading (ToSTNeT-3) implemented by INPEX today. As a result of the sale, JAPEX expects to book an extraordinary income as outlined below.

1. About the Transaction

Since the establishment of North Sumatra Offshore Petroleum Exploration Co., Ltd., the precursor to INPEX, JAPEX holds a certain percentage of the shares of INPEX as a strategic shareholding in order to facilitate collaboration and other business relationships in Japan and overseas.

On the other hand, we evaluates qualitatively and quantitatively the rationality of strategic shareholdings, and reduces its holdings when we judge that the rationality has diminished. As a result of reviewing the level of our holdings of the INPEX's shares from the perspective of asset efficiency and other factors, we have decided to reduce the ratio of such holdings.

2. Details of the Sale
(1) Number of shares owned before tendering	106,893,200	(7.32 %*1 of the total number of outstanding shares
			excluding treasury shares)
(2) Number of shares tendered	53,446,600
(3) Number of shares sold	53,446,600	(Sale price per share: 946 yen)
(4) Number of shares owned after the sale	53,446,600	( 3.80%*2 of the total number of outstanding shares
			excluding treasury shares)
Note)	*1: Share hohlding ratio to 1,460,357,100 shares after exluding 1,966,500 shares of treasury shares as of September
	30, 2021.

*2: Share holding ratio to 1,406,910,500 shares after exluding 1,966,500 shares of treasury shares as of September 30, 2021, and 53,446,600 shares of treasury shares repurchased by INPEX through ToSTNeT-3 today.

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3. Future Outlook

As a result of this transaction, JAPEX expects to book an extraordinary income of 39.8 billion yen from the sale of investment securities in its consolidated and non-consolidated financial results for the third quarter of the fiscal year ending March 31, 2022.

The consolidated financial forecast for the fiscal year ending March 31, 2022, including this transaction, will be disclosed at the time of the disclosure of the second quarter financial results scheduled on November 9, 2021.

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