CALGARY, Aug. 4 /CNW/ - Jura Energy Corporation ("Jura" or the "Company")
is issuing the following clarification regarding the Company's June 2, 2006
press release specifically with respect to the net area of the Badin North and
South blocks for which the Company has exploration rights and is providing
additional information relating to its previously announced private placement
and the listing requirements associated with its new status as an oil and gas
company.
Badin North and South Blocks
The quoted area was previously expressed in terms of the gross area of
the entire Badin block of 1,178,746 acres. Certain portions of the property
are subject to mining leases unrelated to the Company and the net area for
which the Company has exploration rights in the Badin blocks is 620,571 acres.
Accordingly, the total gross area of the seven assignments expressed in the
press release as 1,845,723 was also on a gross basis and reflects a net
exploration area of 1,287,548 acres.
The Company was aware of these unrelated mining leases on the properties
at the time of the acquisition and the total acreage that the Company intends
to target has not changed. The Company is issuing this notice simply in the
interest of clarifying the public record, although the Company does not
believe this information has any commercial impact.
Private Placement
The Company expects to close the previously announced offering
("Offering") for 15 million units of the Company during the week of August 7,
2006. Each unit will consist of one common share in the share capital of Jura
("Common Share") and one common share purchase warrant ("Warrant"). Each
Warrant will be exercisable for one year from the date of issuance at a price
of CDN$1.50 per Common Share. In the event that the Common Shares of the
Company trade at CDN$2.50 or higher for a period of 20 consecutive trading
days at any time after four months and one day after the closing of the
Offering, the Company may accelerate the expiry date of the Warrants by giving
notice to the holders thereof and in such case the Warrants will expire on the
60th day after the date on which such notice is given by the Company. In
addition, the agents to the Offering will be issued an aggregate of 900,000
broker warrants ("Broker Warrants") exercisable for 2 years at a price of
$1.00 per Broker Warrant. Each Broker Warrant is exercisable for one Common
Share.
Immediately prior to the closing of the Offering, the Company had
74,794,195 Common Shares issued and outstanding. Upon closing of Offering, the
Company will have 89,794,195 Common Shares issued and outstanding and
15,900,000 Warrants issued and outstanding (including the Broker Warrants),
representing an issuance by the Company of securities equal to 41.3% of the
issued and outstanding Common Shares of the Company immediately prior to the
closing of the Offering (including the Common Shares underlying the Warrants
and the Broker Warrants). As part of the Offering, certain officers and
directors of the Company are expected to purchase 1,955,000 units,
representing approximately 16.3% of the Offering. On completion of the
Offering the Company does not expect any material effect on the control of the
Company and no officer or director of the Company is expected to own greater
than 10% of the Common Shares. The Company has relied on section 604(d) of the
Toronto Stock Exchange Manual to solicit shareholder approval by written
consent for the Offering, as previously disclosed in its press release issued
on July 21, 2006 (the "Press Release"). The Toronto Stock Exchange has agreed
to list the Common Shares being issued in connection with the closing of the
Offering although the Company did not pre-clear the Press Release with the
Toronto Stock Exchange as is required.
Jura will use the proceeds of the Offering to fund capital expenditures
at its wholly owned subsidiary Frontier Holdings Limited's oil and gas
projects in Pakistan and for general corporate purposes.
Listing Requirements for Oil and Gas Company
Given Jura's new status as an oil and gas company, the Company must meet
minimum listing requirements on the TSX and file a technical report compliant
with National Instrument 51-101. The Company has until November 1, 2006 to
file such a report and establish that it meets the TSX's original listing
requirements. Failure to meet those requirements would cause the Company to
delist from the TSX and apply for a listing on the TSX Venture Exchange. Jura
has commissioned a technical report compliant with National Instrument 51-101
and expects it to be completed within the timeframe prescribed by the TSX.
About Jura:
Jura is based in Calgary, Alberta, and listed on the Toronto Stock
Exchange trading under the symbol JEC.
Forward-looking statements: This document contains statements about
expected or anticipated future events and financial results that are
forward-looking in nature and, as a result, are subject to certain risks and
uncertainties, such as general economic, market and business conditions, the
regulatory process and actions, technical issues, new legislation, competitive
and general economic factors and conditions, the uncertainties resulting from
potential delays or changes in plans, the occurrence of unexpected events, and
the Corporation's capability to execute and implement its future plans. Actual
results may differ materially from those projected by management. For such
statements, we claim the safe harbour for forward-looking statements within
the meaning of the Private Securities Legislation Reform Act of 1995.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
