JED Oil Inc.
AMEX : JDO

JED Oil Inc.

November 14, 2005 08:45 ET

Jed Oil Inc. Announces Record Third Quarter Financial Results and a New Director

CALGARY, Alberta--(CCNMatthews - Nov 14, 2005) -

Provides Budget Update and Guidance for Q4 2005 and Q1 2006 (all amounts expressed in U.S. Dollars)

JED Oil Inc. (AMEX: JDO) today announced financial results for the third quarter ended September 30, 2005 and updated guidance.

Third Quarter 2005 Compared to Third Quarter 2004

-- Revenue rose 478% to approximately $3.3 million from $570,176;

-- Cash flow increased 673% to almost $1.5 million from $190,792;

-- Net income rose to $446,165 from a loss of $616,166;

-- Average production increased over 300% to 759 boe/d from 184 boe/d.



Summarized financial and operational data

(in US$ 000's except for volumes and per share amounts)
----------------------------------------------------------------------
All financial results Three months Nine months
are in accordance Ended Sept 30 Ended Sept 30
with US GAAP
2005 2004 Change 2005 2004 Change
---------------------- -------- ------- ------ -------- ------- ------
Production Information
---------------------- -------- ------- ------ -------- ------- ------
Oil production (boe
per day) 586 170 245% 503 102 393%
---------------------- -------- ------- ------ -------- ------- ------
Gas production (mcf
per day) 1,042 87 1,098% 838 31 2,603%
---------------------- -------- ------- ------ -------- ------- ------
Total production (boe
per day) 759 184 313% 643 107 501%
---------------------- -------- ------- ------ -------- ------- ------

---------------------- -------- ------- ------ -------- ------- ------
Financial Information
---------------------- -------- ------- ------ -------- ------- ------
Petroleum and Natural
Gas Revenue $3,294 $570 478% $7,028 $966 628%
---------------------- -------- ------- ------ -------- ------- ------
Cash flow from
operations $1,475 $191 673% $4,004 $180 2,121%
---------------------- -------- ------- ------ -------- ------- ------
Cash flow per share,
basic(1) $0.10 $0.01 900% $0.28 $0.02 1,300%
---------------------- -------- ------- ------ -------- ------- ------
Net Income (loss) $446 ($616) 172% $1,445 ($979) 248%
---------------------- -------- ------- ------ -------- ------- ------
Net income (loss) per
share, basic(1) $0.03 ($0.04) 175% $0.10 ($0.10) 200%
---------------------- -------- ------- ------ -------- ------- ------
Total debt $20,000 Nil N/A $20,000 Nil N/A
---------------------- -------- ------- ------ -------- ------- ------
Operating information
(on a per boe basis)
---------------------- -------- ------- ------ -------- ------- ------
Average price received
per bbl of oil $48.07 $34.36 40% $40.31 $33.51 20%
---------------------- -------- ------- ------ -------- ------- ------
Average price received
per mcf of gas $7.53 $4.28 76% $6.58 $4.33 52%
---------------------- -------- ------- ------ -------- ------- ------
Average price received
per boe $47.16 $33.68 40% $40.03 $33.15 21%
---------------------- -------- ------- ------ -------- ------- ------
Operating costs per
boe (2) $4.52 ($0.63) 817% $4.85 $2.01 141%
---------------------- -------- ------- ------ -------- ------- ------
Operating netbacks per
boe $34.63 $22.56 54% $28.78 $22.18 30%
---------------------- -------- ------- ------ -------- ------- ------

"BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead."

(1) All per share numbers reflect the 3-for-2 stock split.

(2) Negative operating cost per boe for the three months ended
September 30, 2004 is a result of a reversal of an accounting
estimate from the second quarter 2004.



"Although these results are reflective of our business plan to date, we have budgeted a significant drilling program which has commenced in the fourth quarter of this year and carries on throughout 2006," stated Al Williams, President of JED. He added, "Details of the budget for the fourth quarter of 2005 and the first quarter of 2006 are shown below. As indicated in the table, it is anticipated that this program will create unprecedented growth in our Company."

Drilling Update (Budget summary)

All of the wells mentioned in the table below will be drilled through farm-in arrangements with Enterra Energy Trust (NASDAQ: EENC, TSX: ENT.UN) or JMG Exploration, Inc. (PCX: JMG)



Q4 2005
Anticipated
Average net
Number of working production
wells Area interest adds Capital costs
(%) (boe/d) ($millions)
Ferrier,
9 Alberta 55 500-600 11
Ricinus,
6 Alberta 40 200-300 7
1 North Dakota 50 none in Q4 2.5
---------- --------------- -------------- -------------- -------------
16 700-900 20.5

Q1 2006
Anticipated
Average net
Number of working production
wells Area interest adds Capital costs
(%) (boe/d) ($millions)
24 Desan, B.C. 70 1,600-1,800 37
4 North Dakota 50 400-500 8.5
---------- --------------- -------------- -------------- -------------
28 2,000-2,300 45.5



To date in the fourth quarter of 2005, five successful wells have been drilled in the Ferrier area with an additional well currently drilling and three successful wells have been drilled in the Ricinus area with an additional well currently drilling. The above budget may contemplate bank financing or property sales.

Drilling Rigs Update

As previously reported, JED currently has four rigs under contract and five new rigs dedicated to the Company as they are built and delivered over the coming months. "We are pleased to report that the first new rig is scheduled for delivery on December 1st with two additional rigs to be delivered on December 15th," stated Tom Jacobsen, JED's CEO. He continued, "The addition of these rigs will allow us to execute our aggressive winter drilling program."

New Director

JED also announces the appointment of Justin Yorke to its Board of Directors. Mr. Yorke's has been an equity fund manager and senior financial analyst for private Swiss banks and investment funds as well as a regional Asian investment bank. He has actively served on the investment committees and boards of companies in Asia and the United States. He currently provides financial and strategic advisory services to companies in Asia and the United States. Mr. Yorke has agreed to serve as Chairman of the Audit Committee. In conjunction with the appointment of Mr. Yorke, Bill Sliney has resigned from the Board. JED would like to acknowledge Mr. Sliney for his contributions during his term as a director which were greatly appreciated.

Conference Call

JED Oil will host a conference call later today at 11:00 am Eastern Time/9:00 am Mountain Time, to discuss the second quarter results, recent corporate news and the outlook for the Company. Interested parties may participate in the call by dialing 706-679-0879. Please call in 10 minutes before the conference is scheduled to begin and ask for the JED Oil conference call. After opening remarks, there will be a question and answer period. This conference call will be webcast live over the Internet on the homepage of the Company's website at www.jedoil.com. To listen to the live call, please go to JED Oil's website at least 15 minutes early to register, and if necessary, download and install any audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days. We suggest listeners use Microsoft Explorer as their browser.

A comprehensive financial report for the three months and nine months ended September 30, 2005 will be available at are available www.sec.gov and www.sedar.com.

About JED

Established in September 2003, JED Oil Inc. is an oil and natural gas company that commenced operations in the second quarter of 2004 and has begun to develop and operate oil and natural gas properties principally in western Canada and the United States. JED has not made direct property acquisitions; rather it develops properties with other oil and natural gas companies under joint venture/farm-in arrangements in which JED finances the cost of development drilling in exchange for interests in the revenue generated by the properties.

"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. JED undertakes no obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise.

Contact Information

  • JED Oil Inc.
    Bruce Stewart or Reg Greenslade, 403-537-3250
    www.jedoil.com
    or
    Investor Relations Counsel
    The Equity Group Inc.
    Linda Latman, 212-836-9609
    or
    Andreas Marathovouniotis, 212-836-9611
    www.theequitygroup.com