A Review of the Nigerian Energy Industry

Australia’s Jacka seeks $15m for stake in Nigeria’s Aje field

24 February 2012, Sweetcrude, ABUJA – Australian company, Jacka Resources is planning to raise A$14.2 million (US$15.2 million) for a planned acquisition of a stake in a Nigerian offshore licence as well as fund its share of an appraisal well, off Tunisia.

The company said in a statement on Friday that it would use part of the money raised towards its previously announced purchase of an interest in the Aje field and OML 113 licence, off Nigeria.

The A$14.2 million is expected to be riased through a two tranche placement of about 105 million fully paid shares priced at A$0.135 per share.

The first tranche will raise about A$5.7 million through the placement of roughly 42.4 million shares while the second will involve the issue of 62.6 million shares and 35,000 options expiring at A$0.20 on 31 December.

“We are appreciative of the very strong support received for this placement and welcome a number of new institutional shareholders in Australia and Europe,” Jacka chairman Scott Spencer said.

“This equity raising will see the Company fully funded for its planned work program and acquisition of the company’s interest in the Aje field.”

The raised fund will also go into funding of the company’s share of the costs of the Hammamet West-3 well on the Bargou Block in the Mediterranean Sea, off Tunisia.

The well plan consists of a pilot hole followed by a horizontal section to intersect fractures within the Abiod formation, thereby increasing the flow potential of the reservoir. The well is expected to be spudded during the third quarter of the year.

The Hammamet West field has previously been estimated to hold between130 million and 600 million barrels of oil in place.

The settlement of the first tranche is expected to occur on 28th February, while the second tranche will settle shortly after the company receives shareholder approval.

Jacka said the shareholder meeting to approve the second tranche and the attaching options was scheduled to take place around 28 March.

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