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

    Closes North Ferrier Asset Sale and Payout of Caribou's Major Secured

    (all amounts expressed in U.S. Dollars)

    DIDSBURY, ALBERTA, June 12 /CNW/ - JED Oil Inc. (AMEX:   JDO) ("JED" or the
"Company") today announced completion of the first step in its previously
announced offer to Caribou Resources Corp. (TSX Venture: CBU) ("Caribou") to
acquire all of its shares and settle with its creditors. JED closed the
acquisition of the debt and security position held by Caribou's major secured
creditor for approximately $26.7 million. JED and Caribou have also been
negotiating the final details of the formal agreements. It is the goal of JED
and Caribou that formal documents for both the arrangements with Caribou's
other creditors and Caribou's shareholders and stock option holders will be
finalized in time to be presented at the next scheduled hearing in the Court
of Queen's Bench of Alberta in Calgary, on Thursday, 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,
which was completed on Friday, June 8th, plus payment in cash to any creditors
with security in priority to the major secured creditor; payment in cash of
approximately $345,500 plus the issuance of 5 million JED common shares to the
unsecured creditors totaling approximately $17.7 million, and the issuance of
up to 4 million JED 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.

    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's
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 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.

    JED also announced that on Friday, June 8th, it closed the previously
announced sale of its North Ferrier assets for approximately $33.9 million. A
majority of the proceeds were utilized in the acquisition of debt from
Caribou's major secured creditor.

    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.

    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 website ( and JED's filings with the
Alberta Securities Commission, which are available at the website
( 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, 403-335-2107 Chief
Executive Officer or Marcia Johnston, 403-335-2105 V-P 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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