Cooper Energy has agreed to farm out a 15 per cent stake in its Bargou block permit in Tunisia to Jacka Resources for $12 million.
Cooper Energy has agreed to farm out a 15 per cent stake in its Bargou block permit in Tunisia to Jacka Resources for $12 million.
Jacka has received commitments from Patersons Securities and Barclay Wells to raise the capital.
In a statement to the Australian Securities Exchange Jacka said, "Overall the block has in excess of 600 million barrels of unrisked mean prospective resources."
Cooper Energy plans to drill another exploration well in November and a further appraisal well is planned at the site in 2011.
See full company statement below:
Newly listed oil and gas company Jacka Resources Limited (ASX:JKA) ("Jacka" or "the Company") is pleased to announce that it has entered into a Farm Out Agreement ("FOA") with Cooper Energy Limited (ASX:COE) ("Cooper") to earn 15% of the Bargou block, located in the Gulf of Hammamet, Tunisia (figure 1).
The Bargou block is located within the Pelagian Basin and covers an area of 4,616km2with predominantly offshore prospects and leads. The Pelagian Basin is a prolific producing basin spanning Tunisia and Libya and contains some of Tunisia's most productive oil and gas fields.
The work program will see two wells drilled within 12 months, an onshore exploration well and an offshore appraisal well. The first well to be drilled in the permit will be the onshore Menzel Horr-1 well, expected to spud in November 2010, targeting 24 million barrels prospective resources (P50). The well will test 3 independent formations - Ain Grab, Bou Dabbous and Abiod.
The second well that is expected to be drilled in the permit will be the offshore appraisal well Hammamet West-3 (HW3) in Q3, 2011 and will target contingent resources of 49 million barrels oil (P50). The well will test the Birsa and Abiod formations following early discoveries at Hammamet West and Hammamet West-2. Hammamet West was drilled in 1967 and had moveable oil shows in core, not tested. Hammamet West-2 was drilled in 1990 and recovered 33 API oil under test.
The targeted formations in Menzel Horr and Hammamet West are already proven producing formations in Tunisia with several fields in close proximity; Maamoura, Zinnia, Tazerka, Al Manzah and Belli.
The Operator has completed a conceptual development plan for Hammamet West and, should the appraisal be successful, it is expected that the oil field will be developed by an unmanned platform and onshore processing and export facility. Tunisia's oil and gas infrastructure is well developed and established, with a refinery at Bizerte in the north and the "transmed" gas pipeline into mainland Europe.
The block has multiple independent structures as follow up exploration opportunities, including Ras Marsa and Kuriate Est, which are expected to be matured into prospects by further technical work. Overall the block has in excess of 600 million barrels of unrisked mean prospective resources.
Under the terms of the Farmin Jacka will earn its 15% equity by funding approximately US$12 million, as follows:
1. Paying a proportion of back costs on the block to Cooper
2. Paying a promote on the drilling and testing of both Menzel Horr and Hammamet West-3.
3. Contributing a working interest equity on all expenditure thereafter.
To fund the first phase of the work program and farmin consideration as part of this transaction, Jacka has received commitments from clients of Patersons Securities and Barclay Wells Ltd to raise capital as follows:
Tranche 1 - a placement under the company's 15% placement capacity to section 708 investors of 3.95 million shares at 20c per share to raise $0.79 million before costs; and
Tranche 2 - a placement, subject to shareholder approval, to section 708 investors to raise $3.21 million by placing 16.05 million shares at a price of 20c.
A notice of meeting will be sent to all shareholders in due course where approval will be sought for the issue of the 16.05 million shares detailed above.
