Jacka Reports Initial Oil Reserves for AJE Field Development, Offshore Nigeria

Jacka Reports Initial Oil Reserves for AJE Field Development, Offshore Nigeria

Key Highlights:
 Independent report confirms 23.4 million barrels of gross 2P oil reserves for the Phase 1 Cenomanian oil development of the Aje Field
 Jacka to book net 2P reserves of 1.3 million barrels of oil
 Jacka will book a further 12.1 million barrels of oil equivalent (boe) as net 2C contingent resources, an increase of 1.6 million boe. These resources will be produced by later development phases (including the Turonian gas)
 Jacka and a group of joint venture partners are well advanced in discussions for development finance
 Final Investment Decision (FID) expected on the Phase 1 Cenomanian project in the near term
 First oil production is currently anticipated by the end of 2015. Initial production rates are expected to be approximately 10,000 barrels of oil per day.
The Directors of Jacka Resources Limited (“Jacka” or “the Company”, ASX:JKA) are pleased to announce the initial booking of oil reserves attributable to its interests in the Aje field, OML113 Nigeria. Jacka’s interests are held by its wholly owned subsidiary PR Oil & Gas (Nigeria) Limited (PROG).
An independent Competent Persons’ Report on the Aje Field recently completed by AGR TRACS International Ltd. (“AGR TRACS”) on behalf of PROG and its joint venture partners has indicated that the gross 2P oil reserves for the Phase 1 Cenomanian oil development are 23.4 million barrels (see Table 1 below). The gross 2C contingent resources total an additional 179 million barrels of oil equivalent, of which 15.7 million barrels of oil
is attributable to the Phase 2 Cenomanian oil development and the remainder to the later Turonian gas/condensate development (see Table 2 below). These reserve and resource estimates were derived assuming an oil price of US$80/barrel flat real terms (RT).
Jacka has booked net 2P reserves of 1.3 million barrels of oil attributable to its Aje interests. In addition, the Company’s net 2C contingent resources from the Cenomanian oil Phase 2 and 3 developments have been revised upwards to 1.5 million barrels an increase from Jacka’s previous 2C contingent resources for the Cenomanian of 1.3 million barrels. In aggregate, Jacka’s total net 2C contingent resources from the Aje Field
have increased from 10.5 MMBOE to 12.1 MMBOE.
Jacka’s Chairman Mr Max Cozijn commented:
“Jacka is pleased to achieve this milestone in the development of the Aje Field and of the Company. Following the Final Investment Decision by the joint venture the first significant activity in the field will be the drilling of Aje-5 and the completion of this well and the existing Aje-4 well, in Q1 2015. Installation of the production facilities, including tying the wells to the FPSO, will occur later in 2015. Jacka looks forward to achieving first commercial production at the end of 2015.
“I am also pleased to note that AGR TRACS have reported that the development scenarios for both the current project, targeting Cenomanian oil only, and the combined Cenomanian oil development and Turonian gas/condensate developments look economically robust”
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Source: Jackaresources

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