Japan Petroleum Exploration : Notice Regarding Acquisition of Tight Oil and Gas Assets in the U.S. through Acquisition of the Entire Equity Interest in Verdad Resources Intermediate Holdings LLC and Change in Status of Consolidated Subsidiary (Sub-subsidiary)(692.9 KB)

December 18, 2025

Japan Petroleum Exploration Co., Ltd.

Note: This document has been translated from the Japanese original for reference purposes only.

In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Copyright © 2025 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved.

Acquisition of Tight Oil and Gas Assets in the U.S.

• Japan Petroleum Exploration Co., Ltd. (JAPEX) has resolved to acquire tight oil and gas assets in the

  U.S. (hereinafter “the Assets”) through the acquisition of all equity interests in Verdad Resources Intermediate Holdings LLC (VRIH) via Peoria Resources Acquisition Company, LLC (AcquCo), managed by Peoria Resources, LLC (Peoria), an overseas subsidiary. The date of the interest transfer is scheduled for around the end of February 2026 upon completion of the agreed closing procedures.

  Japan PetroleumExploration Co., Ltd.（JAPEX）

  Item	Content
  Oil-Gas Production Ratio	Light oil: 49% NGL (Natural Gas Liquids): 24% Natural gas: 27%
  Main Acquired Assets	Wells in production: over 1,000 Wells planned development: over 1,000
  Forms of Mining Rights Concession	Oil and gas lease agreement
  Interest Ratio	Varying by mining district
  Sales and Transportation	Selling to wholesale distributors within the U.S.

  Japex (U.S.) Corp.（JUS）Peoria Resources, LLC (Peoria)Peoria Resources Acquisition Company, LLC (AcquCo)
  Verdad Resources Intermediate Holdings LLC (VRIH)

  Copyright © 2025 Japan Petroleum Exploration Co., Ltd. (JAPEX) All Rights Reserved. 2

  Location of the Assets

  Item	Content
  Location of the Assets	Denver-Julesburg Basin in northeastern Colorado (Some interests are in southeastern Wyoming)

  “Tight Oil and Gas Development” （operator assets）acquired this timein Colorado and Wyoming

  < U.S. Business Expansion >

  Dry Piney Project (under consideration) in Wyoming

  Tight Oil Development

  （existing business)

  in Texas, Oklahoma and

  Wyoming

  Japex (U.S.) Corp.

  in Houston, Texas

  Freeport LNG Project in Texas

  Existing tight oil and gas project

  The Assets

• Production volume is expected to increase by approximately twofold, and proven reserves are projected to rise by approximately threefold.

  FY2020

  FY2021

  FY2022

  FY2023

  FY2024

  FY2026

  FY2020

  FY2021

  FY2022

  FY2023

  FY2024

  FY2026

  The Assets

Production Profile of the Assets (Image)

Non-operator production volume (incl. additional development)

Operator production volume

(additional development)

Operator production volume

(already developed)

BOED

BOED (Annual average)

thousand BOE

JAPEX Consolidated Net Proved Reserves Outlook (Image) JAPEX Consolidated Production Volume Outlook (Image)

• Going forward, following the prescribed procedures, we plan to acquire an equity stake in VRIH around the end of February 2026.

• Peoria employees will lead production and development to launch the operator business. In

  addition to employees already hired at Peoria by the end of February 2026, recruitment efforts will also target employees primarily engaged in operations under the seller, with plans to secure approximately 50 personnel required for the development and operation of the Assets.

• JAPEX plans to continuously advance development from 2026 through the early 2030s.