2009-08-15-2008-11-01

To buy 12.5% interest in 6 exploration concessions in Badin IV North, Badin IV South, Kandra (excluding Sui Main Limestone development), Salam, Mirpur Mathelo and Karsal concessions.

Kuwait-based Gulf Petroleum Exploration International will acquire a 12.5% interest in six exploration concessions in a Pakistani joint venture from Petroleum Exploration (Pvt) Ltd., a portfolio company of Islamabad, Pakistan-based Shahzad International Group of Cos., and Jura Energy Corp., Calgary (Toronto: JEC). The assets are in the Badin IV North, Badin IV South, Kandra (excluding Sui Main Limestone development), Salam, Mirpur Mathelo and Karsal concessions. Gulf Petroleum will carry obligations to the joint venture by paying 66.67% of the first US$6 million in costs to drill the first four exploration wells of the work program in the blocks; 58.33% of the first US$6 million to drill the next five exploration wells; and 50% of the first US$6 million to drill an additional two wells; contingent on there being at least four commercial discoveries from the first nine wells. Jura will receive US$4.25 million in cash from GPX toward past costs. Pro forma, in the Baldwin IV North, Baldwin IV South, Salam and Karsal blocks, Jura will hold 37%, Petroleum Exploration will hold 37% and Gulf Petroleum will hold 25%. In the Kandra and Mirpur Mathelo blocks, Jura will hold 35%, Petroleum Exploration will hold 35%, Gulf Petroleum will hold 25% and the Pakistani government will hold 5% with the option to increase its stake to 20% following a commercial discovery. Gulf Petroleum chairman Abdullatif Al-Tourah says, "GPX has targeted Pakistan as a focus country for investment and we are delighted to have this opportunity to participate in a material exploration-well program. We were not only attracted by the acreage, but also the very strong joint-venture partnership of PEL and Jura."