Jura Energy Corporation

Jura Energy Corporation

November 12, 2014 05:30 ET

Jura Energy Corporation: Update on Production from Zarghun South

CALGARY, ALBERTA--(Marketwired - Nov. 12, 2014) - Jura Energy Corporation (TSX:JEC) ("Jura") is pleased to announce the successful full commissioning of the surface processing facilities at its Zarghun South gas field and a consequent significant increase in sale gas volumes from the field.

As disclosed in Jura's press release dated August 13, 2014, "off specification" gas was being sold from the field under an interim gas sale arrangement (the "Interim Arrangement") due to a delay in the commissioning of an Amine Sweetening Unit. The "off specification" gas was being sold at a 30% price discount.

Following full commissioning of the processing facilities, gas supplied to Sui Southern Gas Company Limited ("SSGCL") now meets the specification requirements provided under the Gas Sale and Purchase Agreement with SSGCL and is no longer being sold at a 30% price discount for "off specification" gas.

The field is now producing approximately 17 MMcfd (6.8 MMcfd net to Jura) of sales gas, a significant increase from sales gas volumes during the Interim Arrangement of approximately 4 MMcfd (1.6 MMcfd net to Jura). The condensate to gas ratio is in the range of 1.2 to 1.9 bbl per MMcf.

Approximately 80% of Zarghun South's reserves are certified as "tight gas" under Pakistan's Tight Gas (Exploration and Production) Policy, 2011. Tight gas is expected to be entitled to a price of US$ 6.74 per MMBtu. Conventional gas will be to be sold at US$ 2.73 per MMBtu. Accordingly, the expected monthly revenue to Jura from the Zarghun South gas field is estimated to be US$ 715,000 (net of 12.5% royalty).

"Bringing Zarghun South into full scale production is a highly significant event for Jura. Zarghun South is Jura's second-largest asset, by reserves, and is now by far our largest asset in production. The cashflows projected from the field mean that 2015 is expected to be Jura's first ever profitable year," commented Shahid Hameed, Jura's Chief Executive Officer.

The Zarghun South lease covers an area of approximately 124 sq.km in the western part of the Sulaiman Fold and Thrust Belt of the Middle Indus Basin. It is strategically located near the gas demand centre of the city of Quetta. Jura holds a 40% working interest in Zarghun South, which is operated by Mari Petroleum Company Limited.

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 "approximately", "expected", "entitled", "estimated" and similar expressions are used to identify forward looking information. Specific forward-looking statements in this press release include information concerning the entitlement to a price of US$ 6.74 per MMBtu for tight gas under the Pakistan Tight Gas (Exploration and Production) Policy, 2011, and Jura's expected monthly revenue from Zarghun South.

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, 2013, available on SEDAR at www.sedar.com, for further description of the risks and uncertainties associated with Jura's business.

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