Jadela's Eagle Ford El Indio #1-H Initial Testing Results

Marketwired

CALGARY, ALBERTA--(Marketwire -09/07/11)- Jadela Oil Corp.   ("Jadela") (TSX-V: JOC.V - News) wishes to announce that the El Indio #1-H well produces oil, gas, butane and other hydrocarbons.   Approximately 5,360 barrels of liquid propane/butane were injected into the formation to fracture the well.   The majority of this propane/butane is expected to be recovered and resold or used for fracturing subsequent wells.   The well was flowed for 58.75 hours from August 27, 2011 to August 31, 2011.   The well was then shut in order to test the purity of the recovered propane/butane for resale purposes.   The well was reopened on September 3, 2011 and is currently producing.   The well is expected to be produced for the next 7 to 10 days while the tie-in pipeline and permanent treatment facility, storage tanks and trucking terminal are being constructed.   The permanent treatment facility/trucking terminal is located two miles away from the El Indio #1-H wellsite on Highway 1021.   Oil flow and gas flow are restricted by the capacity of the propane/butane recovery equipment.   As of September 6, 2011 (6:00am)(122.75 flowing hours) the well had produced 969 bbl of oil (210 bbl in last 24 recorded hours) and gas of 13.978 MMscf (0.706 MMscf in last 24 recorded hours) or alternatively stated a boe/d of approximately 327 boe/d (for last 24 recorded hours) from a 2,400 foot lateral with an 8 stage frac (2 of which were not fully fracced) with the flow rate choke restricted to 10/64 of an inch.   The oil recovery rate is increasing as the propane/butane from the frac is recovered.   Jadela is in the process of acquiring additional equipment to increase the propane recovery rate.   When drilling El Indio #1-H, Jadela drilled a pilot hole and logged the pilot hole with the following log suites: DSL/HDIL/ZDL/CN/GR/Sonic.   A total of 25 sidewall cores were obtained over the 186 foot Lower Eagleford formation.   In the El Indio #1-H wellpath/frac zone (excluding certain anomalous results) the lab results as prepared by Core Laboratories LP (independent laboratories) showed TOC of 5.0 - 6.5% with a carbonate percentage of 50 - 60%.   Total (ambient) porosity (MR Shale TM Analysis - Core Laboratories LP) ranged from 10 - 15% and total percentage pore volume occupied by oil ranges from 37% to 79%.   The oil produced has an API gravity of 40.3 degrees according to Fesco, Ltd (independent engineers).

About Jadela

Jadela is a junior oil and gas exploration company.   For additional details, please visit Jadela's website at www.jadelaoil.com.

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law.   Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.   In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the timing and completion of the recovery of propane/butane, the future use of such propane/butane, the future production of the well, anticipated or expected production rates, timing related to the construction of the tie-in pipeline and permanent treatment facility, storage tanks and trucking terminal, future oil and propane recovery rates.   Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct.   We cannot guarantee future results, performance or achievements.   Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations and assumptions made by the Company.   Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information.   Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in the prices of oil and natural gas; governmental regulation of the oil and gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the oil and gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and other factors.   Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement.   We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation.   Readers are cautioned not to place undue reliance on forward-looking information.

Disclosure provided herein in respect of boes may be misleading, particularly if used in isolation.   A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact:


Contacts:
Jadela Oil Corp.
Gregory J.   Leia, President and CEO
Suite 1510 - 777 - 8th Street SW, Calgary Alberta T2P 3R5
(403) 873-8166
gleia@jadelaoil.com
www.jadelaoil.com
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