JED Oil Inc. Announces 2007 Second Quarter Financial Results

    (all amounts expressed in U.S. Dollars)

    DIDSBURY, ALBERTA, August 15 /CNW/ - JED Oil Inc. (AMEX:   JDO) today
announced financial results for the three and six months ended June 30, 2007.


    Summarized financial
     and operational data
    (in US$ 000's except
     for volumes and per
     share amounts)
    ---------------------------- --------- ------ ------- --------- ------
    All financial results
     are in accordance    3 Months Ended           6 Months Ended
     with US GAAP            June 30,                 June 30,
                          2007     2006    Change  2007     2006    Change
    ---------------------------- --------- ------ ------- --------- ------
    ---------------------------- --------- ------ ------- --------- ------
    Oil production (bbl
     per day)                244       904   -73%     248       746   -67%
    ---------------------------- --------- ------ ------- --------- ------
    Gas production (mcf
     per day)              3,761     8,234   -54%   3,918     6,119   -36%
    ---------------------------- --------- ------ ------- --------- ------
    Average production
     (boe per day)           871     2,277   -62%     901     1,766   -49%
    ---------------------------- --------- ------ ------- --------- ------
    Exit rate (boe per
     day)                    260     1,825   -86%     260     1,825   -86%
    ---------------------------- --------- ------ ------- --------- ------
    Financial Information
    ---------------------------- --------- ------ ------- --------- ------
    Revenue               $3,791    $8,639   -56%  $7,116   $13,277   -46%
    ---------------------------- --------- ------ ------- --------- ------
    Cash provided by
     (used in) operating
     activities           $1,257 ($16,599)   108%  $2,074 ($10,332)   120%
    ---------------------------- --------- ------ ------- --------- ------
    Cash provided by
     (used in) operating
     activities per share  $0.08   ($1.11)   107%   $0.14   ($0.70)   120%
    ---------------------------- --------- ------ ------- --------- ------
    Net income applicable
     to common
     stockholders        $14,646      $468 3,029% $10,629      $446 2,283%
    ---------------------------- --------- ------ ------- --------- ------
    Net income per share   $0.98     $0.03 3,167%   $0.71     $0.03 2,267%
    ---------------------------- --------- ------ ------- --------- ------
    Operating information
     (on a per boe basis)
    ---------------------------- --------- ------ ------- --------- ------
    Average price
     received per bbl of
     oil                  $57.06    $52.00    10%  $53.18    $48.90     9%
    ---------------------------- --------- ------ ------- --------- ------
    Average price
     received per mcf of
     gas                   $7.37     $5.82    27%   $6.67     $6.02    11%
    ---------------------------- --------- ------ ------- --------- ------
    Average price
     received per boe     $47.83    $41.70    15%  $43.63    $41.53     5%
    ---------------------------- --------- ------ ------- --------- ------
    Operating costs per
     boe                   $5.66     $8.01   -29%   $5.13     $8.80   -42%
    ---------------------------- --------- ------ ------- --------- ------
    Operating netbacks
     per boe              $33.84    $24.42    39%  $31.09    $24.18    29%
    ---------------------------- --------- ------ ------- --------- ------

    "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."

    Recent Operating Highlights

    --  JED sold its producing properties in the North Ferrier area of
Alberta and a non-operated property at Sousa in Alberta for net proceeds of
over $34.2 million;

    --  The acquisition of Caribou Resources Corp. was commenced during the
second quarter and consummated on July 31, 2007;

    --  A settlement of five drilling contracts, which contributed $1.9
million to the loss for the first quarter, also brought in cash of $2.2
million in the second quarter and terminated commitment liabilities of $17.665
million over the next 4 years;

    --  Management's efforts to reduce overhead expenses result in a 29%
decrease in expenses in the current quarter versus the second quarter of 2006.

    Q2, 2007 Compared to Q2, 2006

    --  Exit production rate was down 86% to 260 boe/d from 1,825 boe/d at
the close of Q2'06 primarily due to asset sales to fund the purchase of
Caribou Resources Corp.;

    --  Q2, 2007 revenue decreased 56% to approximately $3.8 million from
$8.6 million in the same period last year. First half 2007 revenue decreased
46% to approximately $7.1 million from $13.3 million for the first half of

    --  Funds provided by operating activities increased to approximately
$1.3 million from ($16.6) million;

    --  Average sales volumes decreased 62% for the quarter and 49% for the
six months ended June 30th to 871 boe/d from 2,277 boe/d, and to 901 boe/d
from 1,766 boe/d respectively;

    --  Net income applicable to common shareholders was $14.6 million for
Q2, 2007 and $10.6 million for the six months ended June 30th due to the gain
on sale of the Ferrier and Sousa properties. Comparatively, the net income for
the same periods of 2006 were $0.468 million for the quarter and $0.446
million for the six months ended June 30th, increases of 3,029% and 2,283%,

    Referring to the Caribou acquisition, James Rundell, JED's President
stated, "We believe the Caribou assets offer tremendous upside potential with
relatively low incremental expenditures. While we were aware that certain
assets were partially developed and easily converted into production, our
continued review of well files and other information has uncovered
significantly more opportunities than we had first thought."

    The Caribou acquisition is also a key component to the plan presented to
the American Stock Exchange regarding the Company regaining compliance with
the AMEX Company Guide. Richard Carmichael, JED's CFO commented, "We have
taken some large steps over the last six months to reshape the Company by
rebuilding the management team, addressing the cost side of our business, and
through asset rationalization, however, the acquisition of Caribou is
definitely a highlight so far. The acquisition has provided the type of assets
critical to our success over the review period."

    Subsequent to June 30, 2007 the Company drilled, completed, and is
testing a second well in the West Ferrier area of Alberta. Early tests show
that initial production of JED's 80% interest should approach 200 boe/d. The
Company plans to spud an additional well in this area before the end of the
week. These wells are included in the guidance issued by the Company on June
19, 2007, confirming the production estimates contained therein.

    JED's financial statements continue to contain a going concern
uncertainty note. The note provides information regarding the Company and
outlines the issues the Company faces to remain a going concern.

    Legal Action

    JED Oil Inc. has received notification of a legal action against it by
one of its noteholders. In its complaint, the party has alleged a breach of a
covenant of the convertible note and has claimed a right of redemption at 120%
of the face value of the note plus interest. The claim totals $3,607,500 plus
interest which includes the original face value of the note. The noteholder is
alleging that the acquisition of Caribou Resources Corp. is a prohibited
investment rather than a permitted acquisition under the terms of the
convertible notes as management contends. Management of JED does not consider
that the action has merit and will vigorously defend against it.

    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.

    Boe's may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 mcf of natural gas to 1 barrel of crude oil is based on
an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.

    This press release contains forward-looking statements. The words
"proposed", "anticipated" and scheduled" and similar expressions identify
forward-looking statements. Forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered reasonable
by management, are inherently subject to significant business, economic and
competitive uncertainties and contingencies which could cause actual results
to differ materially from the future results expressed or implied by the
forward-looking statements. Such statements are qualified in their entirety by
the inherent risks and uncertainties surrounding future expectations. The
assets, production or drilling opportunities anticipated by the acquisition of
Caribou Resources Corp. may not be realized. Factors that may affect future
results include uncertainties involved in the dispute with one of our
noteholders and other risk and uncertainties as are contained in JED's filings
with the Securities and Exchange Commission ("SEC"), which are available at
the SEC's Web site ( and JED's filings with the Alberta
Securities Commission, which are available at the Web site
( JED is not under any obligation, and expressly
disclaims any obligation, to update, alter or otherwise revise any
forward-looking statement, whether written or oral, that may be made from time
to time, whether as a result of new information, future events or otherwise.

For further information:

For further information: Company: JED Oil Inc. Tom Jacobsen, CEO
403-335-2107 Marcia Johnston, General Counsel 403-335-2105 or
Investor Relations Counsel The Equity Group Inc. Linda Latman, 212-836-9609
Lena Cati, 212-836-9611

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