JED Oil & Enterra Energy to Swap Assets

JED Oil has signed a definitive agreement with Enterra Energy Trust regarding the previously announced property swap. Pursuant to the agreement, JED will acquire 100% of Enterra's working interest in the North Ferrier area and approximately 57.5% of Enterra's interest in the East Ferrier area in exchange for JED's interests in common with Enterra in East Central Alberta, the Desan area of North East British Columbia, the Ricinus area of Alberta and settlement of amounts owing to JED by Enterra.

The swap was based on independent third party engineering evaluations. The value of the additional interests JED is acquiring in Ferrier was determined to be approximately $44 million on a 10% net present value (NPV) basis. The effective date of the transaction is July 1, 2006 with closing scheduled for September 28, 2006 subject to several conditions, including receipt of required consents and approvals by both parties.

At closing of the asset swap, the existing farmout, joint services and business principles agreements between the parties will be terminated.


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