FID Decision for Aje Oil Project Puts Jacka on Fast-Track to Become a Producer
The FID decision is for the Phase 1 development of the Aje Cenomanian oil reservoir in the OML 113 license (Jacka 5.0006% revenue interest). The Aje Field Development Plan (FDP) was submitted to the Nigerian Department of Petroleum Resources (DPR) earlier this year and approval to develop Aje, as proposed in the FDP, was granted in March 2014.
Jacka's Chairman Mr Max Cozijn commented:
"Jacka and its joint venture partners are pleased to have reached this major milestone in the development of the Aje Field. Jacka anticipates achieving first commercial oil production at the end of 2015, which will be a tremendous result for our shareholders and for the Company."
"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 approximately 10,000 bopd, our share of maiden production returns will not be insignificant."
The FDP is primarily focused on the development of the Cenomanian Oil reservoir, and the first phase of this development includes two subsea production wells tied back to a leased FPSO (Floating Production Storage and Offloading vessel):
A contract for the charter of Rubicon's Front Puffin FPSO vessel has been signed, and modifications to bring the FPSO vessel into specification for production on the Aje field will commence. Procurement of subsea equipment and the contracting of a drilling rig for Phase I development are also ongoing.
The development will consist of the re-entering and completion of the existing Aje-4 well and the drilling of a new well, Aje-5. The Aje-5 well will be drilled from a seabed location adjacent to Aje-4 and both wells will be connected via a subsea manifold and production flowlines to the FPSO vessel.
Phase I has an estimated funding requirement of US$220 million to first oil on a 100% basis (net to Jacka US$14.7 million). The Company is currently pursuing funding.
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