Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Jacka Resources and its joint venture (JV) partners have committed to the $220-million Phase 1 development of the Aje Cenomanian oil reservoir, offshore Nigeria.
Jacka’s share of the funding would be A$14.7-million, and the company told shareholders on Thursday that it was currently pursuing funding options to cover its share of the Phase 1 capital costs.
“Jacka and its JV partners are pleased to have reached this major milestone in the development of the Aje field. Jacka anticipated achieving first commercial production at the end of 2015, which will be a tremendous result for our shareholders and for the company,” said Jacka chairperson Max Cozijn.
The Phase 1 developments would include two subsea production wells tied back to a leased floating production storage and offloading vessel.
Jacka noted that a contract for the charger of such a vessel had been signed and modifications to bring the vessel into specification for production at Aje would now start. Furthermore, the procurement of subsea equipment and the contracting of a drilling rig for Phase 1 development was also ongoing.
“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 around 10 000 bbl/d, our share of maiden production returns will not be insignificant,” said Cozijn.
The JV partners were hoping to move ahead with the Phase 2 development once Phase 1 was in production, with the expanded operations to be funded from Phase 1 cash flow.