Mr. Stephen Smith reports

SALE OF WORKING INTERESTS IN SARA & SURI BLOCK

Jura Energy Corp.'s wholly owned operating subsidiary, Spud Energy Pty. Ltd., has entered into an agreement with its joint venture partner, Oil and Gas Development Company Ltd. (OGDCL), for the sale of Spud's entire 60-per-cent working interest in the Sara & Suri block to OGDCL. Spud will also transfer operatorship of the Sara & Suri block to OGDCL as part of the transaction.

Jura's board and management are of the view that the sale transaction is in the best interests of the company in light of, among other things, production from the Sara & Suri block having been shut in since July, 2023, due to a significant drop in pressure and flow rates. Further, it is anticipated that significant abandonment and reclamation obligations related to the Sara & Suri block could become payable in the short- to medium-term unless further exploratory or infill drilling is undertaken, which Spud does not intend to carry out.

This divestment reflects Jura's continued commitment to unlocking shareholder value through a streamlining of its asset portfolio and cost base combined with enforcing its significant arbitration awards against Petroleum Exploration Pvt. Ltd. (PEL) for which it has committed financial backing through the company's previously disclosed term loan facility from Takashi Capital Fund S.A.

As previously disclosed by Jura, PEL, as the operator of the Badin IV North and South blocks (together the Badin blocks), attempted to invoke the forfeiture of the 27.5-per-cent working interest of Jura's subsidiary, Frontier Holdings Ltd. (FHL), in the Badin blocks for alleged non-payment of cash calls. Jura and FHL disputed PEL's actions and the cash calls and initiated two arbitration proceedings against PEL. The first arbitration, under the terms of a settlement agreement dated Aug. 12, 2016, was resolved in favor of Jura and FHL in December, 2024. Jura continues to pursue enforcement of the arbitral damages award and related cost award against PEL. While Jura is highly confident of achieving enforcement of the declarations, the legal process is likely to extend into the medium term as enforcement requires pleadings to be made in Pakistani courts. The second arbitration, under the terms of the joint operating agreement for the Badin blocks, is being pursued through International Chamber of Commerce arbitration and is still at a preliminary stage.

The Sara & Suri block sale transaction remains subject to regulatory approval in Pakistan as well as customary closing conditions and is anticipated to close near the end of Q4 2025.

Sara & Suri block

Spud is a party to, among other related documents, the Sara development and production lease dated Nov. 7, 1998, and the Suri development and production lease deed dated Aug. 2, 2001, granted under the East Badin extension block-B petroleum concession agreement dated July 21, 1987. Spud has a 60-per-cent working interest along with the operatorship in the Sara & Suri block.

Spud will assign its entire 60-per-cent working interest along with the operatorship of the Sara & Suri block to OGDCL with effect from April 30, 2025, subject to the government of Pakistan's approval and other customary closing conditions, pursuant to a farm out agreement and deed of assignment between Spud and OGDCL. In consideration for the assignment of Spud's 60-per-cent working interest, OGDCL has agreed to pay gross consideration of $105,000 (U.S.) to Spud and will assume all obligations (including abandonment and reclamation obligations) related to Spud's 60-per-cent working interest in the Sara & Suri block from the effective date of the Sara & Suri assignment.

The Sara & Suri assignment is anticipated to result in a reduction in monthly operating costs of approximately $12,000 (U.S.) (net to Spud). The sale is not anticipated to have any impact on Jura's reserves since, due to a drop in pressure and flow rates below the economic limit, no recoverable reserves were assigned to the Sara & Suri block as at Dec. 31, 2024. Moreover, unless further successful exploratory or infill drilling is undertaken, it is anticipated that abandonment and reclamation obligations related to the Sara & Suri block would become payable in the short to medium term in the amount of approximately $1.5-million (U.S.) ($900,000 (U.S.) net to Spud).

About Jura Energy Corp.

Jura is an international energy company engaged in the exploration, development and production of petroleum and natural gas properties in Pakistan. Jura is based in Calgary, Alta., and listed on the TSX Venture Exchange trading under the symbol JEC. Jura conducts its business in Pakistan through its subsidiaries, Frontier Holdings and Spud Energy.

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