A Review of the Nigerian Energy Industry

Australia’s Jacka takes 5% stake in Nigerian field

28 September 2011, Sweetcrude, Canberra – Australia-based Jacka Resources will take stakes in OML 113 licence area offshore Nigeria after signing a deal with UK-listed Providence Resources.

Jacka Resources, in announcing the deal, said it would spend $16 million to take a net 5% revenue earning interest in the Aje oil and gas field, located in licence area OML 113 in Nigeria’s West African Transform Margin.

The company will also take a 2.667% interest in the OML 113 licence itself, joining operator YFP, Chevron, Vitol and Panoro Energy in the field.

The deal is conditional on the waiver of joint venture pre-emptive rights and the receipt of corporate, shareholder and regulatory approvals, with the acquisition due to complete on 15 November.

In an announcement to the Australian Securities Exchange, Jacka said the acquisition would generate about 10 million barrels of oil equivalent, with a substantial upside from further exploration and tieback potential within the project area.

“Four wells have been drilled on the Aje field, all of which encountered hydrocarbons, with logging and testing demonstrating significant net hydrocarbon-bearing sections in three of the wells,” the company said.

The acquisition will take place over two tranches following a deposit of $1 million, which has already been paid. The first tranche of $9 million is payable on 15 November, the second of $6 million on 30 April.

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