Japan Petroleum Exploration Co., Ltd.

Japan Petroleum Exploration Co. is acquiring tight oil and gas producer Fundare for $320 million, adding assets in Colorado and Wyoming that produced approximately 9,500 barrels of oil equivalent per day in the first quarter of 2026. The deal, executed through JAPEX's U.S.-based subsidiary structure, covers all four Fundare operating entities and places a major portion of the acquired acreage near JAPEX's existing Verdad assets, which it bought earlier this year. JAPEX expects the acquisition to contribute at least 1 billion yen in operating profit this fiscal year and about 15 billion yen annually from fiscal 2028, with Fundare having generated net income of $20.6 million in 2025. The transaction aligns with JAPEX's 2026-2035 management plan targeting production of 100,000 barrels of oil equivalent per day by fiscal 2031 and 180,000 by 2035, with the United States as a key hub for early earnings growth. The deal is scheduled to close in the fiscal third quarter ending March 2027, funded by cash flow and reserve-based lending.

Japan Petroleum Exploration has revised upward its consolidated net profit forecast for the fiscal year ending March 2027, from the previous 60 billion yen to 65 billion yen, a 21.7 percent increase year-on-year. The company raised its revenue and operating profit forecasts, anticipating higher crude oil sales prices and increased sales volumes. It announced that through a US subsidiary it will acquire all equity interests in Fundare 4, which holds tight oil and gas assets in Colorado and Wyoming, for approximately 320 million US dollars. The acquisition is scheduled for the October to December 2026 quarter, and a contribution of around one-point-something billion yen to operating profit has been factored into the current fiscal year forecast. For the fiscal year ending March 2028, it expects a contribution of about 15 billion yen. The annual dividend forecast remains unchanged at 45 yen.