Jacka announces final investment decision for Aje Oil Field
THE ROADHOUSE BOWSER: Jacka Resources (ASX: JKA) announced its wholly-owned subsidiary (PR Oil & Gas Nigeria Limited), together with its Joint Venture partners, have taken a final investment decision to develop the Aje Cenomanian oil reservoir in the OML 113 licence (Jacka 5.0006% revenue interest), offshore Nigeria.
The Aje Field Development Plan (FDP) was submitted to the Nigerian Department of Petroleum Resources (DPR) earlier this year and approval to develop Aje, as proposed in the FDP, was granted in March 2014.
Jacka Resources chairman Max Cozijn said in the company’s announcement to the Australian Securities Exchange.
“Jacka and its joint venture partners are pleased to have reached this major milestone in the development of the Aje Field,”
“Jacka anticipates achieving first commercial oil production at the end of 2015, which will be a tremendous result for our shareholders and for the company.
“Jacka is now potentially on the fast-track to transformation from an explorer to a producer, and with initial production rates from the field expected to be approximately 10,000 barrels of oil per day, our share of maiden production returns will not be insignificant.”
The FDP is primarily focused on the development of the Cenomanian Oil reservoir, and the first phase of this development includes two subsea production wells tied back to a leased FPSO (Floating Production Storage and
Offloading vessel): A contract for the charter of Rubicon’s Front Puffin FPSO vessel has been signed, and modifications to bring the FPSO vessel into specification for production on the Aje field will commence.
Procurement of subsea equipment and the contracting of a drilling rig for Phase I development are also ongoing.
The development will consist of the re-entering and completion of the existing Aje-4 well and the drilling of a new well, Aje-5.
The Aje-5 well will be drilled from a seabed location adjacent to Aje-4 and both wells will be connected via a subsea manifold and production flow lines to the FPSO vessel.
The Aje-5 well trajectory is designed to intersect the Cenomanian reservoir close to where the Aje-2 well intersected the Cenomanian reservoir.
Phase I has an estimated funding requirement of US$220 million to first oil on a 100 per cent basis (net to Jacka US$14.7 million).
The company is currently pursuing funding options including the possibility of an RBL facility to cover Jacka’s share of phase I capital costs.
Email: info@jackaresources.com.au
Website: www.jackaresources.com.au