Enterra Energy Trust

Enterra Energy Trust
Jed Oil, Inc.
AMEX : JDO

January 31, 2005 18:30 ET

Enterra Energy Trust, JED Oil Inc. and JMG Exploration, Inc. Announce Joint Agreements and Trading Policy; Enterra Also Announces Action against Former Officers


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ENTERRA ENERGY TRUST

NASDAQ SYMBOL: EENC
TSX SYMBOL: ENT

AND JED OIL INC.

AMEX SYMBOL: JDO

JANUARY 31, 2005 - 18:30 ET

Enterra Energy Trust, JED Oil Inc. and JMG
Exploration, Inc. Announce Joint Agreements and
Trading Policy; Enterra Also Announces Action against
Former Officers

CALGARY, Alberta--(CCNMatthews - Jan 31, 2005) -

Enterra Energy Trust (NASDAQ: EENC; TSX:ENT.UN), JED Oil Inc. (Amex:
JDO) and JMG Exploration, Inc. today announced that they have entered
into written agreements to formalize their mutually synergistic business
relationships. Enterra Energy Trust ("Enterra") is an oil and gas income
trust established in late 2003; JED Oil Inc. ("JED") is an oil and gas
development company formed late in 2003 and JMG Exploration, Inc.
("JMG") is an oil and gas exploration company begun in late 2004 which,
as previously announced, is currently in the process of its initial
public offering.

Under a newly signed Agreement of Business Principles, asset
acquisitions by Enterra will be contract operated and drilled by JMG if
they are exploratory prospects, and contract operated and drilled by JED
if they are development projects. If JMG makes an exploratory find on
its assets, when the prospect has been proven to be commercially viable,
Enterra will have the right to purchase 80% of JMG's interest in the
prospect at an engineered value determined by independent engineers.
Development of the assets will be done by JED, which will pay 100% of
the development costs to earn 70% of the interests of both JMG and
Enterra. Enterra will have a first right to purchase assets developed by
JED. In addition, under Technical Services Agreements signed between JED
and each of Enterra and JMG, JED will provide staff while Enterra will
provide offices and other administrative services to JED and JMG. As
consultants to Enterra and JMG, JED's employees will be eligible to
participate in benefit plans of Enterra and JMG, if any.

"The signing of these agreements formalizes understandings and
arrangements which have been verbally agreed to and informally in place
between the three companies. The agreements provide a framework which
should benefit all the parties in a number of ways, including increased
access to asset acquisitions, sources of financing for acquisitions,
exploration and development, operations, and substantial cost savings.
With the parties having joint interests in the same assets, it is
believed that there will be operational as well as administrative cost
savings," stated Reg Greenslade, President and CEO of Enterra.

"All three companies have oil and gas assets in both the western United
States and western Canada, but each have different business objectives
and approaches to the oil and gas industry. In these agreements, we have
found a way that works to the benefit of all three while eliminating
potential conflicts arising from competing interests of companies in the
same industry," noted Al Williams, President of JED.

Enterra, JED and JMG also announced the approval and immediate
implementation of a Joint Trading, Public Disclosure and Confidentiality
Policy for all directors, officers, employees and consultants of the
three parties. Under the Policy, securities may only be traded during 45
day windows commencing on the fourth day following the release of annual
and quarterly financial results. Trading is also prohibited when there
is material information which has not been disclosed to the public, in
accordance with U.S. and Canadian securities laws. Short sales and
trading in puts and calls are prohibited by the Policy, as are both
purchases and sales within six months of each other, with exceptions for
stock savings plans and option exercises.

"The insiders of Enterra and JED are not subject to the U.S.
"short-swing profit" rule prohibiting both purchases and sales within
six months of each other, but because of the large number of American
unitholders and shareholders in Enterra and JED, respectively, we wanted
to mirror this rule; not just for our officers, directors and
consultants, but all employees. We also felt that the Policy should
apply to the securities of Enterra, JED and JMG because of the business
relationships among them," stated Scobey Hartley, Chairman of Enterra's
Compensation Committee. "As a further measure of transparency, following
each trading window Enterra, JED and JMG will disclose all trades made
by officers, directors and employees/consultants," added Reg Greenslade.
The joint Policy also designates spokespersons for each of Enterra, JED
and JMG, prohibits selective disclosure of information and violations of
confidentiality as was the generally accepted practice at Enterra and
JED, but is now in a written corporate policy for all three companies.

Enterra also announced that it has filed a statement of claim against
three former officers for damages caused by breaches of fiduciary duty,
the duty of care they owed to Enterra, failure to provide proper notice
of termination and for repayment of their net bonuses for fiscal year
2004. The officers are the former President, CEO and director, who
resigned on January 15th as previously announced, the Chief Financial
Officer and the Vice-President, Operations. "Legal actions are never
pleasant, but the Board felt that this measure was required in the best
interests of Enterra and its unitholders," stated Reg Greenslade. "Plans
were in place for the previously announced departure of the former
President and CEO and everyone is working extra hard to fill the gaps in
staffing stemming from the absence of the other individuals. We do not
anticipate any business disruptions as a result of these actions."

The three officers were in a dispute with Enterra over the size of their
bonuses for 2004 and the CFO and Vice-President stopped showing up for
work, alleging that the receipt of smaller bonuses than they claim they
are entitled to constituted constructive dismissal. Scobey Hartley
stated, "In reviewing Enterra's documents as a result of the dispute, it
was discovered that the terms of the Bonus Plan required receipt of
disinterested unitholder approval, which was not obtained. As a result,
the Enterra Board has rescinded the Enterra 2004 bonus. It was also
determined that unauthorized revisions to the Plan were certified as
materially accurate by the President and CFO of Enterra."

"Safe Harbor" statement under the Private Securities Litigation Reform
Act of 1995: This news release contains forward-looking statements that
are subject to risk and uncertainties, including, but not limited to,
the impact of competitive services, demand for services like those
provided by the company and market acceptance risks, fluctuations in
operating results, cyclical market pressures on the oil and natural gas
industry and other risks detailed from time to time in the company's
filings with Securities and Exchange Commission. Neither Enterra Energy,
JED Oil nor JMG Exploration undertakes any obligation to update or
revise any forward-looking statements whether as a result of new
developments or otherwise.

-30-

Contact Information

  • Enterra Energy Trust
    Reg Greenslade
    President & CEO
    JED Oil Inc. - Chairman
    403-213-2507
    Website: www.enterraenergy.com
    or
    JED Oil Inc.
    Bruce Stewart
    CFO
    403-538-3236
    Website: www.jedoil.com
    or
    Investor Relations Counsel
    The Equity Group Inc.
    Linda Latman
    212-836-9609
    or
    Investor Relations Counsel
    The Equity Group Inc.
    Rob Greenberg
    212-836-9611
    Website: www.theequitygroup.com