JED Oil Inc. Announces 2007 Third Quarter Financial Results and Reports Progress

    Drilling Results and Guidance Updated

    (all amounts expressed in U.S. Dollars)

    DIDSBURY, ALBERTA, November 14 /CNW/ - JED Oil Inc. (AMEX:   JDO) today
announced financial results for the three and nine months ended September 30,
2007, reviewed its progress over the past year, and updated its future program
and guidance.

    Q3, 2007 Compared to Q3, 2006

    The past year has been pivotal for JED and a number of problems and
obstacles have been overcome. At the end of the third quarter in 2006 there
was some doubt as to the ability of the Company to continue as a going
concern. A year later, JED is not only continuing as an operating company but
is in a growth mode and is poised for what the Company believes will be
significant gains over the next 6 months in production, revenues and reserves
which have not been historically recognized. JED is a very different company
than it was a year ago, with substantial changes in both assets and
management. Many of the assets discussed in the third quarter of 2006 have
been sold and new assets acquired, particularly through the acquisition in
July of Caribou Resources Corp. Accordingly management believes that the
comparison of much of the data between the third quarters of 2007 and 2006 is
not only meaningless but taken out of context could even be misleading. As a
result of the above, JED is back in a growth mode and management is excited
about future prospects.

    Summarized financial and operational data
    (in US$ 000's
     except for volumes
     and per share
    All financial
     results are in       3 Months Ended           9 Months Ended
     accordance with US   September 30,             September 30,
                          2007     2006    Change  2007     2006    Change
    Oil production (bbl
     per day)               286       692   (59)%     258      728   (65)%
    Gas production (mcf
     per day)             3,317     6,391   (48)%   3,466    6,211   (44)%
    Average production
     (boe per day)          839     1,757   (52)%     835    1,763   (53)%
    Exit rate (boe per
     day)                 1,108     2,001   (45)%   1,108    2,001   (45)%
    Revenue              $3,011    $7,096   (58)% $10,126  $20,373   (50)%
    Cash provided by
     (used in)
     activities          $1,431    $3,800   (62)%  $3,504   $6,485   (46)%
    Cash provided by
     (used in)
     activities per
     share                $0.07     $0.25   (72)%   $0.21    $0.44   (52)%
    Funds from
     operations            $587    $2,926   (80)%  $2,391   $7,557   (68)%
    Funds from
     operations per
     share                $0.03     $0.20   (85)%   $0.14    $0.51   (73)$
    Net income(loss)
     applicable to
     stockholders       ($1,226) ($61,555)   98%    9,403 ($61,109)  115%
    Net income(loss)
     per share - basic   ($0.06)   ($4.12)   99%    $0.55   ($4.12)  113%
     information (on a
     per boe basis)
    Average price
     received per bbl
     of oil              $66.63    $56.46    18%   $61,89   $51.32    21%
    Average price
     received per mcf
     of gas               $5.80     $5.96    (3)%   $6.56    $6.00     9%
    Average price
     received per boe    $39.01    $43.90   (11)%  $44.42   $42.33     5%
    Operating costs per
     boe(*)                $15.93     $7.23   120%    $9.06    $8.24    10%
    Operating netbacks
     per boe             $23.08    $36.67   (37)%  $35.36   $34.09     4%

    (*) Operating Costs per boe have risen as a result of the northern assets
acquired from Caribou, which traditionally have higher lifting costs due to
both distance and weather. The last reported operating costs per boe by
Caribou were $21.09 per boe, so JED has already been able to reduce these
costs. In addition these costs will not rise substantially as production
increases, so that the Company's growth in production will cause a further
decrease in operating costs per boe in the future.

    "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."

    Financial Update

    JED has made significant strides over the past year and is currently in a
growth mode, exploiting the undeveloped assets acquired through Caribou. The
remaining hurdles are the redemption of outstanding notes, which management is
confident that the Company has a variety of options with which it can meet
this liability, and the plan to bring JED back in compliance with the American
Stock Exchange continued listing requirements, which is on track.

    At the end of 2007 third quarter JED had outstanding Notes totaling $40.2
million which mature and are redeemable on February 1, 2008. Effective October
31, 2007, holders of $1.22 million Notes exchanged their Notes for Junior
Notes, which are subordinated to the Notes; mature on February 1, 2010, and
may be converted at the holder's option to common shares at a conversion price
of $3.50 per common share. JED is currently in discussion with other
Noteholders about exchanging their Notes for Junior Notes and is targeting to
exchange approximately $15 million of Notes for Junior Notes. JED intends to
redeem the remaining outstanding Notes not exchanged for Junior Notes or
converted to common shares by February 1, 2008 by using cash flow and a
combination of proceeds from the sale of assets (as described in more detail
below), debt and other available financing options. JED's Chief Financial
Officer, Richard Carmichael, stated "We believe that a combination of the
various financing options available will enable us to redeem the outstanding
Notes without significant impairment to our winter drilling program. However,
a slow-down in the program is another viable option if required. We also
continue to make progress on the plan presented to the American Stock Exchange
to bring JED back in compliance with its continued listing requirements. JED's
financial statements continue to include a going concern uncertainty note. The
note provides information regarding the Company and outlines the issues the
Company faces to remain a going concern. We have made positive strides towards
meeting these issues."

    During the third quarter, the holders of approximately $28.76 million of
JED's Series B Preferred shares voted to amend the terms of the shares: among
other things, extending the maturity date for two years to February 1, 2010,
and reducing the conversion price (at which the shares may be converted at the
holder's option to common shares) to $3.50 from $16.00.

    Third Quarter 2007 Drilling Update

    The highlight of the third quarter was the completion of the acquisition
of Caribou Resources, which has been renamed JED Production Inc. and is now a
wholly-owned subsidiary of JED. Also during the third quarter in West Ferrier
JED drilled and completed a producing gas well, drilled a standing Ellersley
gas well and spudded a third location.

    Subsequent Events, Drilling Update and Winter Drilling Program

    Subsequent to September 30th, JED has successfully completed an oil well
and is in the process of tie-ins of two more wells in the Steen River, Alberta
area. The Steen River assets and development potential are one of the most
significant benefits of the acquisition of Caribou. The completion and two
tie-ins will result in an immediate material increase in production and
revenues. In addition, by applying the appropriate analysis to the Steen River
area anticline formation, an independent consulting engineer has added over 33
million boe's of proved reserves to the value of the Steen River assets which
had not been historically recognized, significantly increasing the value of
the Caribou acquisition. JED plans a 15 well drilling program in the Steen
River area this winter. Although the start was delayed by warm weather, a rig
is on site and will shortly commence drilling the first well, and licenses and
permits are in place for the whole program. If necessary, weather delays can
be caught up by the availability of multiple rigs. James Rundell, JED's
President noted, "Now that our winter drilling program has commenced, we are
looking forward to developing the upside potential with relatively low
incremental expenditures that we anticipate from the Caribou assets."

    In addition to the current winter program, JED's continuing geological
review of the entire Steen River prospect has resulted in the identification
of 22 additional drilling locations for the 2008/2009 drilling program, on
lands held by JED or adjacent thereto.

    The entire Steen River prospect consists of over 2 million acres, of
which only approximately 200,000 acres are currently under lease to JED and
other parties, and the balance is available for leasing from the Province of
Alberta. This means that the Company owns over 150,000 undrilled acres, and
has the potential acquire over ten times as much additional land, that JED
continues to review for further drilling sites in the years to come. In
addition to the Steen River area, management is currently reviewing its other
assets and other opportunities to identify summer drilling prospects for 2008
and beyond.

    Also since September 30, 2007, JED finished drilling the last well in
West Ferrier, which is a standing Ellersley gas well, and the Redwater assets
of JED Production were sold for approximately $6.75 million (Cdn$7 million).

    In addition, in accordance with JED's ongoing business plan of developing
assets and subsequently selling them, sales of the Midale, North Dakota;
Wizard Lake, Alberta, and West Ferrier, Alberta assets are currently in
negotiations. JED, which holds 100% working interest in its Steen River
assets, is also considering acquiring working interest partners for up to a
25% working interest. These new partners would purchase the working interest
in the existing Steen River production and pay their pro rata share of the
future capital expenditures. Proceeds from the sales of the Midale, Wizard
Lake and West Ferrier Assets, and sale of up to a 25% working interest in the
existing Steen River production, will be used for the redemption of the
outstanding Notes on February 1, 2008 and program development. As required,
JED also has the options of additional debt, use of cash flow and other
financing options, and, if necessary, a slow down in the current drilling

    Guidance Update

    In its news release of June 19, 2007, JED stated that its then estimate
for 2007 year-end production was approximately 2,900 BOE/d and utilizing
existing lands, the current capital base and the significant reduction in
debt, the forecasted exit rate for Q1 2008 and Q2 2008 was expected to be
approximately 4,100 BOE/d and 4,500 BOE/d respectively. The guidance for the
2007 year-end production assumed the planned sales of the Midale, Wizard Lake
or West Ferrier assets would occur in 2008. Another variable to the guidance
is the potential sale of up to a 25% working interest in the Steen River
assets. Accordingly the Company now believes that an exit rate at December 31,
2007 is more likely to be around 2,700 BOE/d or 2,000 BOE/d, assuming a 100%
or 75% working interest respectively in Steen River, as JED is currently
negotiating the proposed asset sales and will close them as soon as possible.
Assuming the three asset sales, our guidance for JED's production exit rate at
March 31, 2008 is 4,100 BOE/d or 3,000 BOE/d and at June 30, 2008 is 4,400
BOE/d or 3,300 BOE/d, assuming JED has a 100% working interest or 75% working
interest respectively in Steen River. Management believes that production
guidance is achievable and that the biggest factor in meeting the guidance is
timing of the drilling program.

    In addition, on June 19, 2007 JED reported that funds provided by
operating activities before changes in operating assets and liabilities
("funds from operations") on a combined basis for Q3 2007 were expected at
approximately $2.9 million and $8 million for Q4. Funds from operations for Q1
2008 were expected at approximately $13 million with $26.5 million expected
for the first six months of 2008. Funds from operations for 2007 were
$587,000, which was significantly below the issued guidance, primarily due to
the results of the last two wells drilled in West Ferrier which were not
completed and put on production. Attaining the results of the guidance for Q4
2007 and the first two quarters of 2008 will depend on the timing and results
of the winter drilling program.


    Currently, JED has common shares outstanding of approximately 23.8
million. On a fully diluted basis there would be approximately 38 million
shares based on the exercise or conversion to common shares of existing stock
options, Agents Warrants (as revised in accordance with their terms), Notes
(as revised in accordance with their terms), Junior Notes and Series B
Preferred shares (as amended).

    JED Negotiates Casing Failure Claim

    JED is in the process of negotiating claims to be reimbursed for costs
occurred as a result of a casing failure caused by defective pipe during the
completion of a well in West Ferrier. JED has collected from its primary
insurer but is negotiating to collect on a second policy for sub-surface
environmental clean-up from a second insurer or JED's insurance agent, and for
reimbursement for all non-insured costs from the company which provided the
pipe. A legal action is being prepared and will be brought by JED if these
negotiations are not successful to JED's satisfaction in the near future.

    Conference Call

    JED will host a conference call tomorrow Thursday, November 15th at 11:00
am Eastern Time/9:00 am Mountain Time, to discuss the third quarter results,
recent corporate news and the outlook for the Company. Interested parties may
participate in the call by dialing 706-758-4183. 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 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 management discussion and analysis (MD&A) and financial
report for the three months and nine months ended September 30, 2007 will be
available at and on November 15, 2007.

    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
anticipated success and production of JED's current drilling, work-over and
tie-in opportunities may not be realized. Other 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: JED Oil Inc. Tom Jacobsen, 403-335-2107 CEO or
Marcia Johnston, 403-335-2105 VP Legal & Corporate Affairs or
Investor Relations Counsel: The Equity Group Inc. Linda Latman, 212-836-9609
Lena Cati, 212-836-9611

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