Tajzha Ventures Ltd.

Tajzha Ventures Ltd.

November 28, 2007 14:00 ET

Tajzha Ventures Ltd. Enters Into Agreement to Acquire Gulf of Mexico Participation Rights

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2007) -


Tajzha Ventures Ltd. ("Tajzha") (TSX VENTURE:TJZ) is pleased to announce that it has entered into a Letter of Intent to acquire the participation rights to five oil & gas exploration blocks in federal waters in the Gulf of Mexico.

The exploration blocks are located in federal waters in the Gulf of Mexico offshore Texas, Louisiana and Alabama covering a total of 23,000 acres. All Blocks are in relatively shallow water ranging in depth from 100 to 240 feet, have 3D-seismic coverage and have fourteen 14 drilling targets identified. The first well is expected to be drilled in early 2008 in the Viosca Knoll Block 79 ("VK-79") at a depth of 2,900 feet. The estimated share of Tajzha's drilling costs is CDN $882,000 and completion costs is CDN $692,000.

The participation rights are currently held by an arm's length private USA company ("Privateco"). Tajzha intends to acquire all of the issued shares of Privateco for CDN $875,000, payable by the issue of 2,500,000 common shares of Tajzha at $0.35 per share.

Upon completion of the acquisition of Privateco, Tajzha will have the opportunity to earn a 30% working interest in the blocks by paying for 40% of the work programs outlined in the Participation Agreement with the operator. No property title or working interest will be transferred to Tajzha until Tajzha's expenditure commitment has been fulfilled.

To date, the operator and other joint venture participants have spent a total of approximately US $7 million on the acquisition of the leases, seismic and geological data. As part of the terms of the agreements, Tajzha will be required to reimburse the vendor up to 30% of these costs (US $2.1 million) from net production revenue. These costs are allocated by exploration block and net production revenue from each block will only be applied to costs for that block.

Tajzha has commenced its due diligence process and expects to have it completed before year-end. Completion of the acquisition is subject to due diligence and TSX Venture Exchange approval. There is no assurance that this transaction will close.

A finder's fee of $15,000 will be payable upon closing of the transaction.


Tajzha Ventures Ltd. is a junior oil and natural gas company based in Calgary, Alberta with core operated properties located in the Davey Lake and Provost Areas, Alberta. Tajzha is also a participant in a drilling venture located in North-eastern British Columbia. Tajzha's Common Shares trade on the TSX Venture Exchange under the symbol "TJZ".

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

Contact Information

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