JACKA RESOURCES STILL CONSIDERING WITHDRAWAL FROM TANZANIA’S RUHUHU BLOC

 

Ruhuhu Basin operator Jacka Resources has said it is considering the negotiated withdrawal of Tanzania’s Ruhuhu Block after an unsuccessful farm-out campaign it initiated in September 2014. This is the second time the company has considered a withdrawal from the license.

“The Company is also seeking a possible withdrawal from its involvement in Tanzania, where it has had no success in attracting a farminee to its 100% interest in the Ruhuhu licence,” Jacka Resources chairman Max Cozijn said in a letter to shareholders.

Jacka says it has consequently curtailed its operating and overhead costs and continues to focus on minimising financial exposure by all available means including a divestment of the project.

In the Tanzanian Ruhuhu block, the Company is partway through its 4 year exploration work program. Under the terms of the Production Sharing Agreement the US$4m minimum work program is required to be completed by March 2017. The Company also agreed to drill a well with an anticipated US$10m minimum expenditure on an identified target that may emerge from the exploration work program.

The Company has spent a total of US$1,709,525 on the Tanzanian Ruhuhu block to date.

“The Company has provided a guarantee to the Tanzanian Petroleum Development Corporation in respect of its subsidiary’s obligations under the PSA,” the annual report continues.

Jacka Resources has said a prospective resource assessment at the Ruhuhu Block has set the highest estimate at 3.6 billion barrels of oil in both conventional and unconventional oil. According to the resource assessment the 3.6BOE include 263 million barrels of oil (MMBO) of conventional neogene oil and 20 Tcf unconventional gas + liquids potential (shale/tight gas and coal seam methane).