2022-09-19 | TSXV: JEC | Press release
CALGARY, Alberta, Sept. 19, 2022 (GLOBE NEWSWIRE) — Jura Energy Corporation (“Jura”) announces that its wholly-owned subsidiary, Spud Energy Pty Limited (“SEPL”), has entered into an additional short-term financing agreement to facility (the “Facility”), pursuant to which the amount of the Facility was increased by 425 million Pakistani Rupees (“PKR”) (approximately US$1.80 million using the Bank’s exchange rate). State of Pakistan as of September 19, 2022 from 1 USD = 235.88 PKR) to 625 million PKR (approximately 2.65 million USD).
The facility has been extended by JS Bank Limited, a related party of Jura, and bears interest at the 1 month Karachi Inter Bank Offered Rate (16.07% using the posted rate of State Bank of Pakistan on September 19, 2022) plus 2%, maturing twelve months from the date of disbursement. Interest is payable quarterly in arrears.
Jura further announces that flash flooding caused by unusually heavy monsoon rains in Pakistan damaged approximately 10 km of the Zarghun South sales pipeline. As a result, production from the southern Zarghun concession has been suspended. There is no damage to the production facilities installed in the field and all field personnel have been safely evacuated from the field location.
The Zarghun South joint venture partners and the selling gas buyer are evaluating how to fix the pipeline as soon as possible. Jura believes the pipeline repair work could take 8 to 12 weeks and production from the southern Zarghun concession is expected to resume in the fourth week of December 2022.
The South Zarghun Lease covers an area of 124.22 square kilometers in the western part of the Sulaiman Fold and Thrust Belt of the Middle Indus Basin. It is strategically located close to the gas demand center of Quetta City.
Jura holds a 40% working interest in the southern Zarghun concession, which is operated by Mari Petroleum Company Limited.
About Jura Energy Corporation
Jura is an international energy company engaged in the exploration, development and production of oil and gas properties in Pakistan. Jura is based in Calgary, Alberta and is listed on the TSX Venture Exchange under the symbol JEC. Jura operates in Pakistan through its subsidiaries, Frontier Holdings Limited and Spud Energy Pty Limited.
This press release contains certain forward-looking statements and forward-looking information (hereinafter collectively referred to as “forward-looking statements”) within the meaning of Canadian securities laws. The words “expected”, “will” and similar expressions are used to identify forward-looking information. Specific forward-looking statements contained in this press release include information regarding the expected timeline for the completion of pipeline repair work and the expected timeline for the resumption of production at Zarghun South Lease.
The forward-looking statements contained in this press release are based on management’s beliefs, estimates and opinions as of the date the statements are made in light of management’s experience, current conditions and expected future developments in the areas in which Jura is currently active and other factors. management considers appropriate in the circumstances. Jura undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise, except as 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 anticipated result will not occur, some of which are beyond Jura’s control. These assumptions and risks include, but are not limited to: risks associated with the oil and gas industry in general, such as operational risks in exploration, development and production, delays or changes in plans regarding exploration or development projects or capital expenditures, imprecision of resource and reserve estimates, assumptions regarding production and development timing and costs, and labor availability and price -labor and equipment, weather conditions, volatility and assumptions regarding raw material prices and exchange rates, marketing and transportation risks, environmental risks, ability to access sufficient capital from internal and external sources, changes in applicable legislation and risks resulting from the global COVID-1 pandemic 9 and its effects on general economic conditions and public markets, Jura’s business and Jura’s ability to prepare and approve required filings in a timely manner. In addition, there are economic, political, social and other risks inherent in doing 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, 2021, available on SEDAR at www.sedar.comfor a more detailed description of the risks and uncertainties associated with Jura’s business.
FOR MORE INFORMATION, PLEASE CONTACT:
Mr. Muhammad Nadeem Farooq, CEO
Tel: +92 51 2270702-5
Fax: +92 51 227 0701
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.