Jura Energy Corporation provides the following update on its drilling activities.

Mirpur Mathelo Block (Block #2769-9) The joint venture has terminated its testing program on the Rafay-1 well. Based on the hydrocarbon shows during drilling, log results, and interpretations, it was concluded that gas accumulations existed in several zones of the Lower Goru. Testing did not, however, yield sustainable flows of gas. Two of the three drill stem tests (“DST”) produced gas which flared for a short period. Down-hole pressure data indicates tight sands with low permeability as a major reason for the lack of flow.

The joint venture is currently evaluating whether hydraulic fracturing or other stimulation may be successful in generating commercial gas flows from the well. Consequently the well has been temporarily suspended. The rig will be released pending further analysis of the results and determination of next steps.

Through its subsidiary, Frontier Holdings Limited, Jura has a 35% interest in the Mirpur Mathelo Block. Jura’s interest may be reduced to 28% in the event the Government of Pakistan exercises back-in rights under the Petroleum Concession Agreement following a commercial discovery. The remaining interest is held by the Operator, Petroleum Exploration (Pvt) Ltd.; Government Holdings (Pvt) Ltd.; and Gulf Petroleum Exploration International.

Badin IV North Block (Block #2468-6) The joint venture has also terminated its testing program on the Jamali-Deep-1 well. Based on the hydrocarbon shows during drilling, log results, and interpretations, it was concluded that gas accumulations existed in several zones of the Lower Goru. Testing did not, however, yield sustainable flows of gas. All of the three DSTs produced gas which flared for a short period. Down-hole pressure data indicates tight sands with low permeability as a major reason for the lack of flow.

The joint venture is currently evaluating whether hydraulic fracturing or other stimulation may be successful in generating commercial gas flows from the well. Consequently the well has been temporarily suspended. The rig will be released pending further analysis of the results and determination of next steps.

Through its subsidiary, Frontier Holdings Limited, Jura has a 37.5% interest in the Badin IV North Block. The remaining interest is held by the Operator, Petroleum Exploration (Pvt) Ltd. and Gulf Petroleum Exploration International.

Tags: Jura Energy Corporation