Tajzha Ventures Ltd.
TSX VENTURE : TJZ

Tajzha Ventures Ltd.

January 17, 2008 13:29 ET

Tajzha Ventures Ltd. Private Placement Completed and Corporate Update

CALGARY, ALBERTA--(Marketwire - Jan. 17, 2007) - Tajzha Ventures Ltd. ("Tajzha")(TSX VENTURE:TJZ) -

PRIVATE PLACEMENT

Further to the Press Release dated November 6, 2007 announcing a non-brokered Private Placement of units ("Units") and flow-through units ("Flow-Through Units"), Tajzha Ventures Ltd. (the "Tajzha") is pleased to announce that it has completed the Private Placement, and has issued 1,552,000 Flow-Through Units for the gross aggregate consideration of $543,200.

Each Flow-Through Unit consists of one (1) common share in the capital of the Corporation ("Common Share"), issued on a "flow-through share" basis, and one (1) warrant ("Warrant"). Every one (1) Warrant is exercisable on or before two (2) years from the issuance date exercisable at the price of $0.40 per Common Share in the first year and at the price of $0.45 per Common Share in the second year. The Common Shares and Warrants are subject to a hold period of four months, from the date of issue.

Finders' fees in the amount of $26,026, 28,600 Flow-Through Units and finder's warrants ("Finder's Warrants") to purchase 51,480 Common Shares at a purchase price of $0.40 per Common Shares on or before twenty-four months from the date of issue, were paid to arm's length finders in connection with the Offering.

Proceeds from the offering will be used to finance general exploration expenditures which will constitute Canadian exploration expenses, as defined in the Income Tax Act (Canada), and will be renounced for the 2007 taxation year.

Tajzha is also pleased to provide an update of its business activities.

FINANCINGS

During 2007, Tajzha raised over $1.9 million from private placement unit issuances at $0.30 and $0.35.

DAVEY LAKE

In August 2007, Tajzha closed the acquisition of producing oil and gas assets in the Davey Lake Area of Alberta ("Assets") for total consideration of $4.15 million gross, $1.95 million net to Tajzha. Tajzha is the operator of the property.

The Davey Lake properties consist of a 100% working interest, net 47% to Tajzha. At the effective date of the purchase, April 1, 2007, production from the property was 78 boe per day (39 net Tajzha) of oil and liquids and 344 Mcf per day (172 net Tajzha) of gas for a total of 136 boe per day (68 net Tajzha) from 17 producing wells. In October 2007, Tajzha shut in approximately 36 boe/d, net 17 boe/d to Tajzha, of oil & gas production from one well on the property. In addition, some of the wells required a significant amount of maintenance when Tajzha assumed operatorship and production had fallen to approximately 50 boe/d, net 23 boe/d to Tajzha. The vendor agreed to reduce the purchase price and provided for lost revenue in the amount of $1,300,000, $611,000 net to Tajzha. Through an active maintenance program, workovers and recompletions, production has increased to approximately 125 boe/d, net 59 boe/d to Tajzha. Additional well workovers, reactivations and recompletions are ongoing and will continue for the next few months.

KOTCHO LAKE

The drilling rig is on site, pre-drilling operations have commenced at Tajzha's Keg River prospect in Northeastern BC and drill out of the final leg of the well will follow. The well has been drilled and cased to within approximately fifty meters of the target Keg River formation. Drilling is expected to take 2-3 days followed by a period of testing of one week. Tajzha will pay 11.67% of the costs of the test well to earn a 10% working interest in the well. There are a total of five exploration blocks.

BROWNFIELD

Tajzha acquired a 75% working interest in an oil and gas property located in the Provost area in East Central Alberta which consists of two sections with three shut-in Manville oil wells and two shut-in Viking natural gas wells. Tajzha is completing engineering studies and expects to commence the re-completion program in the spring of 2008. Subject to the completion of a successful program, management believes that the three oil and two natural gas wells are capable of producing 73barrels of oil equivalent per day, net 55 boe/d to Tajzha and that third party oil and water emulsion can be trucked in, treated and disposed of in its water disposal well.

Tajzha is actively reviewing other projects for acquisition and participation.

Certain statements in this material may be "forward-looking statements" including outlook on oil and gas prices, estimates of future production, estimated completion dates of acquisitions and construction and development projects, business plans for drilling and exploration, estimated amount and timing of capital expenditures and anticipated future debt levels and royalty rates. Information concerning reserves contained in this material may also be deemed forward-looking statements as such estimates involve the implied assessment that the resources described can be profitably produced in the future. These statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated by the Company.

The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in the report are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Tajzha Ventures Ltd.
    Ronnie D. Doman
    President
    (250) 246-4791
    or
    Tajzha Ventures Ltd.
    Terry O. Lashman
    Director
    (604) 684-7929 or 1-800-665-2454
    Website: www.tajzha.com
    or
    CHF Investor Relations
    Alison Tullis
    Account Manager
    (416) 868-1079 ext. 233