On home court at Picola Recreation Reserve, the Blues looked as if they may extend their winning start to five games after a clinical first quarter put them up 13-8 at quarter-time.
Jerilderie worked hard in the second, but could only shave a couple of goals off that lead, the sides going into the main break evenly matched at 24-21.
The Demons continued to surge in the third, levelling proceedings at 32 at the final change and the visitor held its momentum into the last term, escaping a 44-40 winner.
Picola’s first defeat of the year pushes the Blues back into fifth position, now within a four-team group of 4-1 sides trailing the unbeaten leaders, Deni Rovers, Waaia and Tungamah.
The Blues will test themselves against one of the league’s best this weekend, visiting the table-topping Rovers.
Mathoura v Dookie United
A slow start to the season continued for Mathoura, easily handled by Dookie United 21-63 at Mathoura Recreation Reserve.
The Timbercutters were slow off the mark, scoring only four goals in the first quarter and, while the following periods saw the home side looking more competitive, the tone had been set for the heavy defeat.
Mathoura sits at the base of the table, yet to crack the 100-goal mark over five games.
The difficult road continues this weekend as the Cutters hit the road to face off with unbeaten Tungamah.