Jura Energy Corporation
TSX : JEC

Jura Energy Corporation

June 09, 2009 06:00 ET

Jura Energy Corporation: Drilling Update Testing Terminated on Rafay-1 and Jamali Deep Wells

CALGARY, ALBERTA--(Marketwire - June 9, 2009) - Jura Energy Corporation ("Jura") (TSX:JEC) provided the following update on its drilling activities.

Mirpur Mathelo Block (Block #2769-9)

The joint venture has terminated its testing program on the Rafay-1 well. Based on the hydrocarbon shows during drilling, log results, and interpretations, it was concluded that gas accumulations existed in several zones of the Lower Goru. Testing did not, however, yield sustainable flows of gas. Two of the three drill stem tests ("DSTs") produced gas which flared for a short period. Down-hole pressure data indicates tight sands with low permeability as a major reason for the lack of flow.

The joint venture is currently evaluating whether hydraulic fracturing or other stimulation may be successful in generating commercial gas flows from the well. Consequently the well has been temporarily suspended. The rig will be released pending further analysis of the results and determination of next steps.

Through its subsidiary, Frontier Holdings Limited, Jura has a 35% interest in the Mirpur Mathelo Block. Jura's interest may be reduced to 28% in the event the Government of Pakistan exercises back-in rights under the Petroleum Concession Agreement following a commercial discovery. The remaining interest is held by the Operator, Petroleum Exploration (Pvt) Ltd.; Government Holdings (Pvt) Ltd.; and Gulf Petroleum Exploration International.

Badin IV North Block (Block #2468-6)

The joint venture has also terminated its testing program on the Jamali-Deep-1 well. Based on the hydrocarbon shows during drilling, log results, and interpretations, it was concluded that gas accumulations existed in several zones of the Lower Goru. Testing did not, however, yield sustainable flows of gas. All of the three DSTs produced gas which flared for a short period. Down-hole pressure data indicates tight sands with low permeability as a major reason for the lack of flow.

The joint venture is currently evaluating whether hydraulic fracturing or other stimulation may be successful in generating commercial gas flows from the well. Consequently the well has been temporarily suspended. The rig will be released pending further analysis of the results and determination of next steps.

Through its subsidiary, Frontier Holdings Limited, Jura has a 37.5% interest in the Badin IV North Block. The remaining interest is held by the Operator, Petroleum Exploration (Pvt) Ltd. and Gulf Petroleum Exploration International.

About Jura:

Jura Energy Corporation is an international energy company engaged in the exploration, development and production of petroleum and natural gas properties with activities conducted exclusively 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 subsidiaries, Frontier Holdings Limited and Pyramid Energy International Inc., as well as through its 50% interest in the Kandra Power Company (Pvt) 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.

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