A CONSORTIUM involving Perth-based Jacka Resources has given a positive final investment decision to develop the Aje Cenomanian oil reservoir offshore Nigeria.
The Aje filed is located in the OML 113 licence, about 24 kilometres offshore western Nigeria.
Jacka holds a 2.7 per cent participating interest in the licence, a 6.67% contributing interest and a 5% revenue interest in the field.
Jacka chairman Max Cozijn said the company was potentially on the fast-track to transformation from an explorer to a producer, with commercial production targeted at the end of 2015.
“With initial production rates from the field expected to be approximately 10,000 barrels of oil per day, our share of maiden production returns will not be insignificant,” he said.
The FID comes after the Aje field development plan (FDP) was granted by the Nigerian Department of Petroleum Resources (DPR) in March.
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 floating production storage and offloading vessel.
Jacka said procurement of subsea equipment and the contracting of a drilling rig for phase one development are also ongoing
Phase one of the development is expected incur a $US220 million funding requirement to achieve first oil, requiring Jacka to stump up US$14.7 million.
At the end of June, Jacka had roughly A$10 million cash in hand, having completed a $3.9 million placement in the June quarter.
Jacka said it was currently pursuing funding options to cover its share of phase one capital costs, including the possibility of locking in a reserves based lending facility.
Yinka Folawiyo Petroleum is the operator of the Aje field with a 25% stake.
Other joint venture partners include New AGE (24%), First Hydrocarbons Nigeria (16.8%),Energy Equity Resources (16.8)% and Panoro Energy (12.2%).