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Jura to acquire production, announces third party report on Kandra reserves and provides update on TSX listing
Jura to acquire production, announces third party report on Kandra reserves and provides update on TSX listing.
About this update from Jura Energy Corporation
[{"type":"text","content":"\n\n\n\n\n(JEC) TSX\n\nCALGARY, Nov. 6 /CNW/ - Jura Energy Corporation (\"Jura\" or the \"Company\")\nannounces that the Company has entered into a purchase and sale agreement to\nacquire producing oil and gas assets in Pakistan. Jura also announces the\nresults of a third party reserve report on the Kandra Gas Field and clarifies\nthe Company's listing status.\n\nPyramid Acquisition\n\nJura has signed a Share Purchase Agreement, to acquire, together with\nPetroleum Exploration (Pvt.) Limited (\"PEL\"), all of the issued and\noutstanding shares of Pyramid Energy International Inc. (\"Pyramid\") from Asia\nResources Oil Ltd. and Industrial Support Limited. Pursuant to the terms of\nthe Share Purchase Agreement between the parties, Jura will acquire 66.66% of\nthe shares of Pyramid and PEL will acquire 33.33% of the shares.\nPyramid's only asset is a 15.7895% interest in Block 22, which is\nsituated in the Central Gas Basin in Pakistan. The Block 22 assets comprise\nthree gas fields, Hasan, Khanpur and Sadiq, together with the Hamza appraisal\narea. The fields are currently producing approximately 16 MMcf/d of gas into a\nprocessing facility located adjacent to the Hasan Field from where it is\ndelivered and sold to the Sui Northern Gas Pipeline Ltd. Two new production\nwells have been budgeted and are currently scheduled to be drilled in the\nfirst half of 2007. Block 22 is operated by PEL. Jura's portion of the\nbudgeted costs for the drilling of these production wells is U.S.$421,000,\nassuming the acquisition is completed.\nThe consideration for Jura's interest in Pyramid is approximately US$4.8\nmillion in cash, plus US$1,106,700 in common shares of Jura. Completion of the\ntransaction is subject to TSX approval and to approval of the Government and\nState Bank of Pakistan, as well as other customary closing conditions. Jura\ncurrently expects the closing of the transaction to occur within 60 days.\nJura's President and CEO, Nigel McCue, said \"we are extremely pleased to\nhave entered into an agreement to acquire these assets which, when the\ntransaction is completed, will represent our first production in Pakistan. We\nexpect to receive a significant increase in production from the two new wells;\nin addition we believe further appraisal upside exists in the Block. These\nassets also complement our existing exploration, app...