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CALGARY, ALBERTA -- (Marketwire) -- 02/27/13 -- Jura Energy Corporation (TSX: JEC) ("Jura") is pleased to announce that it has entered into a C$11 million credit facility (the "Facility") with its principal shareholder, Eastern Petroleum Limited ("EPL"). The Facility provides Jura with sufficient funding to meet its working interest commitments in order to bring the company's Zarghun South field on production.

Jura will draw down on the Facility over time to fund its capital expenditures and operations. The Facility is designed as a bridge to the completion of a future debt or equity financing, provided that such financing is sourced on terms favourable to Jura. It is anticipated that the Facility will either be: (i) repaid in full following the closing of a future financing or (ii) converted into common shares pursuant to the Conversion Option.

The Facility will be used primarily to fund Jura's estimated US$10.5 million share of the capital expenditures required to bring the Zarghun South field on production. As at August 30, 2011, DeGolyer and MacNaughton Canada Limited ("DeGolyer"), Jura's independent reserves evaluator, estimated Jura's share of the field's gross proved plus probable reserves to be 27.9 Bcf.

Pursuant to the requirement of Pakistan's Tight Gas (Exploration and Production) Policy 2011 ("Tight Gas Policy"), DeGolyer in its report dated April 30, 2012, certified 84.5% of The Zarghun South reserves as "Tight Gas Reserves". Jura's share of gross proved plus probable Tight Gas Reserves is 23.2 Bcf. Production from these reserves will be entitled to an estimated price of US$6.23/MMBtu under such Tight Gas Policy (based on US$80 crude). Jura holds a 40% interest in the Zarghun South Development and Production Lease.

"This facility will fund Jura's commitments for the Zarghun South development and is a strong indication of our principal shareholder's commitment to the Jura assets. Zarghun South is Jura's largest asset. Bringing it on production will be a significant step for Jura and is expected to transform the company into a cash-generating business. We are looking forward to an exciting 2013," said Graham Garner, Jura's CEO.

The Facility is repayable at the demand of EPL on the earlier of (i) February 20, 2014 and (ii) ten (10) business days after the closing of a debt or equity financing by Jura for an aggregate amount in excess of amounts drawn down under the Facility. The principal amount outstanding at any time under the Facility carries interest at US Dollar 3-months LIBOR plus 4% (a rate of 4.29% as of the date of this news release), compounded quarterly. The Facility was approved by directors of Jura who are unrelated to EPL.

The outstanding principal and interest under the Facility is convertible at the option of EPL on the basis of one (1) common share in the capital of Jura for each C$1.00 so converted (the "Conversion Option"). The Conversion Option is subject to the restriction that, during any six month period, the aggregate number of common shares issuable to EPL under the Conversion Option shall not exceed 10% of the number of common shares in the capital of Jura outstanding, on a non-diluted basis, prior to the date of the first conversion of the Facility. Jura has received approval from the Toronto Stock Exchange ("TSX") for the listing on the TSX of the number of common shares that may be issued upon the exercise of the Conversion Option during a six months period. Should additional shares become issuable under the Conversion Option, a further application will be made to the TSX for the listing of such shares on the TSX.