Jadela Updates Status of Maverick County, Texas Mineral Leases

Jadela Updates Status of Maverick County, Texas Mineral Leases

Calgary, Alberta CANADA, December 06, 2012 /FSC/ - Jadela Oil Corp. (JOC - TSX Venture), ("Jadela" or the "Company") wishes to update the disclosure related to its land ownership position in Maverick County, Texas after the closing of the transaction referred to in the Company's October 1, 2012 press release, the transaction referred to in the Company's October 17, 2012 press release, a recent acquisition of a mineral leases by Jadela and the acquisitions of mineral leases by the party ("Third Party") described in the Company's October 1, 2012 press release.

As of December 6, 2012, before the closing of any area of mutual interest ("AMI") transactions (described below), Jadela has lease rights to 7,224 gross acres (1,750 net acres).  Upon closing of the AMI transactions, Jadela will have lease rights to 8,307 gross acres (1,201 net acres).  Although some leases will expire in mid 2014, the majority of the lease will expire on or about November 30, 2015.  Jadela has earned a 65% working interest in 660 gross acres on certain farmin lands (the "660 Acre Tract") as a result of drilling a horizontal well (El Indio #1H).  Jadela is the operator for the 660 Acre Tract under a joint operating agreement. The Third Party is the operator under a joint operating agreement for the remaining 6,564 gross acres (before the closing of the AMI transaction and 7,747 gross acres after the closing of the AMI transactions) which Jadela has lease rights to and with respect to any unleased acreage if Jadela elects to participate under the AMI provisions of the purchase sale and exploration agreement ("PSEA") referred to in the Company's press release dated August 24, 2012.  Development plans are anticipated to be disclosed in 2013.  

Jadela had mineral rights totalling approximately 21,645 gross acres in Maverick County consisting of farmin rights on 5,576 gross acres of mineral lease rights and option rights on 16,069 gross acres pursuant to an option agreement dated May 31, 2011.  Some of the farmin mineral leases lapsed and pursuant to an option agreement dated August 30, 2012, Jadela optioned a significant part of the mineral rights on the farmin lands.  On September 28, 2012, Jadela assigned certain option rights arising from the option agreements dated May 31, 2011 and August 30, 2012 to the Third Party.  The Third Party acquired a 15% co-ownership interest in the 660 Acre Tract as part of the PSEA.  By virtue of a series of lease agreements, the gross acreage under lease or under option by Jadela or the Third Party has been reduced to approximately 12,500 gross acres. The Third Party exercised rights to acquire mineral leases ("Option Leases") to approximately 11,750 gross acres (approximately 8,846 net acres) from a mineral owner.   The Third Party entered into another lease agreement to lease 1,083 gross acres (541.5 net acres).  Jadela has entered into a lease agreement to lease 5,345 gross acres (net 912 acres) within the approximately 11,750 gross acres leased by the Third Party.  By virtue of the AMI provisions of the PSEA, the Third Party has a right to elect to participate in the lands leased by Jadela as to a 75% co-ownership position and Jadela has a right to elect to participate in the lands leased by the Third Party (other than the Option Leases) as to a 25% co-ownership position.  Elections to participate have been provided by Jadela with respect to the 1,083 acre lease and by the Third Party with respect to the 5,345 acre lease.

About Jadela

Jadela is a junior oil and gas exploration company.  For additional details, please visit Jadela's website at http://www.jadelaoil.com

For further information, please contact:

Gregory J. Leia, President and CEO
Jadela Oil Corp.
Suite 1510 - 777 - 8th Street SW
Calgary Alberta  T2P 3R5
T: (403) 265-7544
E: gleia@jadelaoil.com
Website: www.jadelaoil.com

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.  In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the company's development plans.  Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations and assumptions made by the Company.  Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information.  Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in the prices of oil and natural gas; governmental regulation of the oil and gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the oil and gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and other factors.  Readers are cautioned that this list of risk factors should not be construed as exhaustive.  

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation.  Readers are cautioned not to place undue reliance on forward-looking information.
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Source: Jadela Oil Corp. (TSXV: JOC)
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