Jura Energy Corporation: Update on Operations

CALGARY, ALBERTA -- (Marketwired) -- 05/06/15 -- Jura Energy Corporation (TSX: JEC) ("Jura") is pleased to provide an update on its operations in Pakistan.

Guddu Block

Reti-2 development well

After successful drilling, the development well Reti-2 has been completed in the Pirkoh Limestone formation of Eocene age. Production from Reti-2 is expected to commence in June 2015 after tie-in with the existing production facilities.

Jura holds a 10.66% working interest in the Reti lease, which is operated by Oil and Gas Development Company Limited.

Commencement of production from Maru East-1

Production from Maru East-1 has commenced after allocation of gas from the well to Engro Fertilizers Limited, the existing buyer of gas from Reti Maru gas fields in the Guddu Block. Currently, the well is producing gas at the rate of approximately 2.6 MMcf/d (Jura share 0.3 MMcf/d).

Production from Maru East-1 is expected to be entitled to a gas price of approximately US$ 5.11 per MMBtu, based on the cost and freight price of a basket of crude oil priced at US$ 70 per barrel, under Pakistan Petroleum (Exploration & Production) Policy, 2012.

Jura holds a 10.66% working interest in the Maru East lease, which is operated by Oil and Gas Development Company Limited.

Ismail-1 exploration well

The drilling of exploration well Ismail-1 in the Guddu block has commenced. The projected depth of the exploratory well is 840 meters, which will target the hydrocarbon potential of the Pirkoh Limestone formation of Eocene age.

Exploration well Ismail-1 is located approximately 2 km from the existing pipeline infrastructure in the Guddu Block.

Jura holds a 13.5% working interest in the Guddu exploration license, which is operated by Oil and Gas Development Company Limited.

Sara and Suri Blocks

Execution of Gas Pricing Agreement

The Government of Pakistan ("GoP") has executed the Gas Pricing Agreement ("GPA") for the Sara and Suri blocks. In accordance with the GPA, the following pricing will apply to the Sara and Suri gas:

--  The gas will be sold to the buyer at the gas sales price for the power
    sector, as determined and notified by the GoP from time to time (the
    "Power Sector Gas Price"). The current notified price is approximately
    US$ 4.76 per MMBtu.
--  Jura will receive a wellhead gas price equal to the lower of:
    --  The Power Sector Gas Price; and
    --  The price as determined under the GoP's Modified 1994 Petroleum
        Policy (i.e., the GoP's Policy framework of 2000).

The wellhead gas price is therefore expected to be approximately US$ 3.32 per MMBtu, based on the cost and freight price of a basket of crude oil priced at US$ 70 per barrel. To the extent the Power Sector Gas Price exceeds the wellhead gas price, the difference will be paid to the GoP as a gas development surcharge.

Jura is the operator of the Sara and Suri leases and holds a 60% working interest.

About Jura Energy Corporation

Jura 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 TSX trading under the symbol JEC. Jura conducts its business in Pakistan through its subsidiaries, Frontier Holdings Limited and Spud Energy Pty Limited.

Forward Looking Advisory

This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. The words "expected", "approximately", "projected", "target", and similar expressions are used to identify forward looking information. Specific forward-looking statements in this press release include: expected timing for the commencement of production from Reti-2, expected gas price to which production from Maru East-1 will be entitled, hydrocarbon potential of Ismail-1 and expected wellhead gas price for Sara and Suri gas.

The forward-looking statements contained in this press release are based on management's beliefs, estimates and opinions on the date the statements are made in light of management's experience, current conditions and expected future development in the areas in which Jura is currently active and other factors management believes are appropriate in the circumstances. Jura undertakes no obligation to update publicly or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise, unless required by applicable law.

Readers are cautioned not to place undue reliance on forward-looking information. By their nature, forward-looking statements are subject to numerous assumptions, risks and uncertainties that contribute to the possibility that the predicted outcome will not occur, including some of which are beyond Jura's control. These assumptions and risks include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in exploration, development and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the imprecision of resource and reserve estimates, assumptions regarding the timing and costs relating to production and development as well as the availability and price of labour and equipment, weather, volatility of and assumptions regarding commodity prices and exchange rates, marketing and transportation risks, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in applicable law. Additionally, there are economic, political, social and other risks inherent in carrying on business in Pakistan. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. See Jura's Annual Information Form for the year ended December 31, 2014, available on SEDAR at www.sedar.com, for further description of the risks and uncertainties associated with Jura's business.

Contacts:
Jura Energy Corporation
Mr. Shahid Hameed
Interim CEO
+92 51 282 5011
+92 51 287 0331 (FAX)
[email protected]
www.juraenergy.com

Source: Jura Energy Corporation

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