CALGARY, ALBERTA--(Marketwired - Jan. 6, 2014) - Jura Energy Corporation (TSX:JEC) ("Jura" or the "Company") is pleased to announce the first gas production from the Reti-Maru gas fields in the Guddu Block commenced on Thursday, December 26, 2013. Initial production is being controlled to allow buyer and seller facilities testing, commissioning and pipeline packing. Once fully brought on-stream after the commissioning period, management of Jura expects gross production to reach 12 MMcfd (net to Jura 1.3 MMcfd) in January 2014.
The gas is being sold to Engro Fertilizers Limited as the representative of a consortium of fertilizer companies pursuant to a gas sale agreement (the "GSA") entered into by Jura in March 2013. Engro is a leading Pakistani fertilizer company.
Pursuant to amendments made in the Pakistan Petroleum Exploration & Production Policy, 2012 after the execution of the GSA, Reti-Maru gas discoveries qualify for gas pricing under Pakistan Petroleum Exploration & Production Policy 2009 (the "2009 Policy"). The expected gas price under the 2009 Policy conversion regime will be US$ 3.40 per MMBtu. The final determination of gas price is pending approval before the Government of Pakistan. Based on the gas price of US$ 3.40 per MMBtu the expected monthly revenue net to Jura will be US$ 80,000.
The Guddu block covers an area of 2,093 km2 and is located in the district of Ghotki, straddled between the Sindh and Punjab Provinces in Pakistan. Jura holds 10.66% working interest in the Guddu block, which is operated by Oil and Gas Development Company Limited.
Shahid Hameed, President and Interim Chief Executive Officer of Jura stated, "The start of sales from Guddu is a significant milestone for us since it brings a second Jura property into revenue generation. We will look forward to utilizing the cash flows to accelerate value realization for shareholders."
About Jura Energy Corporation
Jura is an international energy company engaged in the exploration, development and production of petroleum and natural gas properties. Jura is based in Calgary, Alberta, and listed on the TSX trading under the symbol JEC. Jura conducts its business in Pakistan through its subsidiaries, Frontier Holdings Limited and Spud Energy Pty Limited.
Forward looking Advisory
This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. The words "expected", "will", "look forward", and similar expressions are used to identify forward looking information. Specific forward-looking statements in this press release include information concerning pricing and revenue from Guddu Block and accelerating value realization for the Jura shareholders.
The forward-looking statements contained in this press release are based on management's beliefs, estimates and opinions on the date the statements are made in light of management's experience, current conditions and expected future development in the areas in which Jura is currently active and other factors management believes are appropriate in the circumstances. Jura undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable law.
Readers are cautioned not to place undue reliance on forward-looking information. By their nature, forward-looking statements are subject to numerous assumptions, risks and uncertainties that contribute to the possibility that the predicted outcome will not occur, including some of which are beyond Jura's control. These assumptions and risks include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in exploration, development and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the imprecision of resource and reserve estimates, assumptions regarding the timing and costs relating to production and development as well as the availability and price of labour and equipment, weather, volatility of and assumptions regarding commodity prices and exchange rates, marketing and transportation risks, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in applicable law. Additionally, there are economic, political, social and other risks inherent in carrying on business in Pakistan. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. See Jura's Annual Information Form for the year ended December 31, 2012, available on SEDAR at www.sedar.com, for further description of the risks and uncertainties associated with Jura's business.