Business
Sale of Working Interests in Sara & Suri Block
CALGARY, Alberta, July 04, 2025 (GLOBE NEWSWIRE) -- Jura Energy Corporation ("Jura" or the "Compa...
About this update from Jura Energy Corporation
[{"type":"text","content":"Sale of Working Interests in Sara & Suri Block\n\n\n\n CALGARY, Alberta, July 04, 2025 (GLOBE NEWSWIRE) -- Jura Energy Corporation (\"Jura\" or the \"Company\") announced today that its wholly owned operating subsidiary Spud Energy (Pty) Limited (“Spud”) has entered into an agreement with its joint venture partner, Oil and Gas Development Company Limited (“OGDCL”), for the sale of Spud’s entire 60% working interest in the Sara & Suri Block (defined below) to OGDCL. Spud will also transfer operatorship of the Sara & Suri Block to OGDCL as part of the transaction.\n \n\n Jura’s board and management are of the view that the sale transaction is in the best interests of the Company in light of, among other things, production from the Sara & Suri Block having been shut-in since July 2023 due to a significant drop in pressure and flow rates. Further, it is anticipated that significant abandonment and reclamation obligations related to the Sara & Suri Block could become payable in the short- to medium-term unless further exploratory or in-fill drilling is undertaken, which Spud does not intend to carry out.\n \n\n This divestment reflects Jura’s continued commitment to unlocking shareholder value through a streamlining of its asset portfolio and cost base combined with enforcing its significant arbitration awards against Petroleum Exploration (Pvt.) Limited (“PEL”) for which it has committed financial backing through the Company’s previously disclosed term loan facility from Takashi Capital Fund S.A.\n \n\n As previously disclosed by Jura, PEL, as the operator of the Badin IV North and South blocks (together the “Badin Blocks”), attempted to invoke the forfeiture of the 27.5% working interest of Jura’s subsidiary, Frontier Holdings Limited (“FHL”), in the Badin Blocks for alleged non-payment of cash calls. Jura and FHL disputed PEL’s actions and the cash calls and initiated two arbitration proceedings against PEL. The first arbitration, under the terms of a Settlement Agreement dated August 12, 2016, was resolved in favor of Jura and FHL in December 2024. Jura continues to pursue enforcement of the arbitral damages award and related cost award against PEL. While Jura is highly confident of achieving enforcement...