CALGARY, ALBERTA--(Marketwire - Jan. 18, 2012) - At the special meeting of the shareholders of Jura Energy Corporation (TSX:JEC) ("Jura") that was held on January 17, 2012 (the "Meeting"), Jura's shareholders voted overwhelmingly to approve: (1) the consolidation of the common shares in the capital of Jura on the basis of one post-consolidation common share of Jura (each a "New Jura Share") for every ten (10) pre-consolidation common shares of Jura (the "Consolidation"); (2) the issuance of 50,659,076 New Jura Shares to Eastern Petroleum Limited ("EPL") in order for Jura to acquire all of the issued and outstanding shares in the capital of Spud Energy Pty Limited ("Spud") from EPL and the reconstitution of the board of directors of Jura (the "Acquisition"); and (3) the non- brokered private placement of 5,000,000 New Jura Shares at a price of $1.00 per New Jura Share, 1,000,000 of which are anticipated to be issued to insiders of Jura (the "Private Placement").

The resolutions in respect of each of the Consolidation, the Acquisition and the Private Placement (together the "Transactions") were approved by over 99% of the common shares in the capital of Jura that were voted at the Meeting.

"We are extremely pleased with the level of shareholder support for the Transactions", said Graham Garner, President and CEO of Jura. "We will be working to close the Transactions as soon as possible and look forward to progress on Jura's properties during the course of 2012."

Following the closing of the Transactions, Jura will have sufficient operating cash flow and capital to execute a meaningful work program and anticipates the following events during 2012:

  • The drilling and completion of a second production well in the Badar gas field to increase existing production;
  • Commencement of the sale of gas from the Guddu block;
  • Completion of the Sara-Suri acquisition;
  • The Government of Pakistan passing the Low Btu Gas Exploration and Production Policy, 2011, which is expected to significantly improve the economics of the Kandra field development;
  • Continued progress on the Zarghun South field development, including improved pricing for some of the reservoirs under Pakistan's Tight Gas Policy, 2011; and
  • The drilling of a number of exploration wells.

Approval by the Jura shareholders of the resolutions passed at the Meeting satisfied an important condition precedent to the closing of the Transactions. Closing of the Transactions is subject to satisfaction of all other conditions precedent to closing, including obtaining conditional listing approval of the New Jura Shares on a Canadian stock exchange. In that regard, Jura is continuing to advance its application with the Toronto Stock Exchange (the "TSX") to list the New Jura Shares on the TSX. Pursuant to the applicable laws of Pakistan, completion of the Acquisition is also subject to the approval of the Director General of Petroleum Concessions in Pakistan ("DGPC"). An application for DGPC approval was filed on December 27, 2011 and is currently in process.

DeGolyer & MacNaughton Canada Limited ("D&M") have independently prepared the following estimates of Spud's reserves in accordance with the COGE Handbook as of August 31, 2011 in a report dated November 1, 2011:

Remaining Reserves as of August 31, 2011
Net Present Value of
Future Net Revenue -
Before Income Taxes -
Reserves Category Natural Gas Natural Gas Liquids Discounted at 10%(3)
MMcf (Net) Mbbls (Net) US$(000)
Proved Developed
Producing 1,204 - 956
Non-producing 1,534 - 2,487
Proved Undeveloped 10,658 3,878 2,921
Total Proved 13,396 3,878 6,364
Probable 17,169 5,110 44,791
Total Proved + Probable 30,565 8,988 51,155
Possible(2) 12,321 3,986 20,925
Total Proved + Probable +
Possible 42,886 12,974 72,080


(1) Estimates of Reserves and Net Present Value have been made assuming that development of each property in respect of which the estimate is made will occur, without regard to the likely availability to Spud of funding required for that development.

(2) Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

(3) Estimates of future net revenue do not represent fair market value.

About Jura:

Jura Energy Corporation is an international energy company engaged in the exploration, development and production of petroleum and natural gas properties in Pakistan. Jura is based in Calgary, Alberta, and listed on the Toronto Stock Exchange trading under the symbol JEC. Jura Energy Corporation conducts its business in Pakistan through its subsidiary Frontier Holdings Limited.

Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Corporation's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information:

Jura Energy Corporation
Mr. Graham Garner
President & CEO
(403) 266-6364
(403) 266-6365 (FAX)