JED Oil Inc. Announces Update in Offer for Caribou Resources Corp.

    Court of Queen's Bench of Alberta Grants Extension to Pursue Offer (all
amounts expressed in U.S. Dollars)

    DIDSBURY, ALBERTA, June 1 /CNW/ - JED Oil Inc. (AMEX:   JDO) ("JED" or the
"Company") today announced that its previously announced offer to Caribou
Resources Corp. (TSX Venture: CBU) ("Caribou") to acquire all of its shares
and settle with its creditors has moved closer to acceptance. At a hearing
yesterday in the Court of Queen's Bench of Alberta in Calgary, an Order was
granted approving an extension of the stay of proceedings until June 14, 2007,
to give Caribou and its Monitor, Deloitte & Touche Inc., the necessary time to
negotiate the final details of the transaction with the Company, and for JED
to acquire the security and liability owed by Caribou to its major secured
creditor. The only other offer for Caribou before the court, that was
presented by Caribou's major secured creditor, has expired and not been
renewed, and the major secured creditor is supporting JED's offer. "Today's
extension by the court and JED's agreement with Caribou's major secured
creditor has gone a long way towards our goal of acquiring Caribou," stated
James Rundell, JED's President. "Subject to the negotiation of the final
details of our offer with Caribou and the Monitor, and acquiring the secured
creditor's liability and security in Caribou's assets over the next two weeks,
we anticipate that Caribou's acceptance of our offer and court authorization
to pursue the required approvals to close the transactions should occur on
June 14th."

    As previously announced, in January 2007, Caribou filed for protection
under the Canadian Companies' Creditors Arrangement Act (the "CCAA"), which is
similar to "Chapter 11" protection in the U.S. JED's offer consists of payment
in full in cash to the major secured creditor of approximately $26.7 million,
plus payment in cash to any creditors with security in priority to the major
secured creditor; payment in cash of approximately $345,500 plus an issuance
of 5 million common shares to the unsecured creditors totaling approximately
$17.7 million, and an issuance of up to 4 million common shares for the
acquisition of all of the 39 to 40 million shares of Caribou on the basis of
one common share of JED for every 10 shares of Caribou held. JED has delivered
approximately $185,000 as a deposit with its offer.

    Caribou is primarily focused on exploring for natural gas in Northern
Alberta, and oil and natural gas in Central Alberta. Caribou's production at
December 31, 2006 was 1,200 barrels of oil equivalent or BOE's per day, and a
report of its estimated reserves effective December 31, 2007 prepared by the
independent engineering firm of McDaniel & Associates Consultants Ltd. showed
total proved reserves of 1,648 MBOE's and total probable reserves of 1,999
MBOE's, for a total of proved plus probable reserves of 3,647 MBOE's with a
net present value of $43.85 million, using the report's forecasted pricing
assumptions at January 1, 2007 discounted at 10%. Caribou also obtained an
evaluation of its undeveloped land of approximately $11.85 million at January
1, 2007 by Seaton-Jordan & Associates Ltd., and estimated its tax pools at
2006 year-end to be $90.29 million and net debt to be $39.62 million.

    Under the CCAA procedure, the Caribou offer must be selected as the best
offer for the creditors by the Court of Queen's Bench, which will be addressed
on the new hearing date of June 14th. The offer must then also be approved by
Caribou's creditors and Caribou's shareholders. The issuance by JED of up to 9
million common shares is also subject to the approval of JED's common
shareholders under the rules of the AMEX. The settlement with Caribou
creditors will be effected under a Plan of Arrangement under the CCAA, and the
acquisition of the shares of Caribou will be effected under a Plan of
Arrangement under the Business Corporations Act (Alberta), which would also be
an element of the Plan of Arrangement under the CCAA. An Information Circular
with detailed information will be mailed to JED and Caribou shareholders.
Following completion of the transactions, Caribou would either become a
wholly-owned subsidiary of JED, or would amalgamate with or be acquired by a
wholly-owned subsidiary or affiliate of JED.

    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: 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.

    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
acquisition of Caribou Resources Corp. is subject to a number of approvals and
conditions, which may not be forthcoming, or the assets, production or
drilling opportunities anticipated by the acquisition may not be realized.
Additional factors that may affect future results 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.

    This press release shall not constitute an offer of securities for sale
in the United States or Canada or the solicitation of an offer to buy
securities in the United States or Canada, nor shall there be any sale of the
securities in any jurisdiction or state in which such offer, solicitation or
sale would be unlawful.

For further information:

For further information: JED Oil Inc. Tom Jacobsen, CEO, 403-335-2107 or
Marcia Johnston, V-P Legal & Corporate Affairs, 403-335-2105 Or
Investor Relations Counsel: The Equity Group Inc. Linda Latman, 212-836-9609
or Lena Cati, 212-836-9611

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