"Jubilant" or the "Company" - Jubilant Bhartia Group
"Jubilant" or the "Company" - Jubilant Bhartia Group
"Jubilant" or the "Company" - Jubilant Bhartia Group
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21st March, 2011<br />
<strong>Jubilant</strong> Energy N.V.<br />
("<strong>Jubilant</strong>" <strong>or</strong> <strong>the</strong> "Company")<br />
First Expl<strong>or</strong>at<strong>or</strong>y well spud in block AA-ONN-2003/1 (Golaghat Block)<br />
<strong>Jubilant</strong> is pleased to announce that <strong>the</strong> expl<strong>or</strong>ation well Prospect-16 (P-16-1), located<br />
approximately 46km south from Golaghat town in <strong>the</strong> AA-ONN-2003/1 block of Assam, was<br />
spudded on March 20, 2011 by <strong>the</strong> Quippo rig #4 .<br />
This is <strong>the</strong> first expl<strong>or</strong>ation well to be drilled by <strong>Jubilant</strong> in this 81 km 2 block. The vertical well<br />
will be drilled to a total depth of 1,660 meters into <strong>the</strong> basement with <strong>the</strong> objective of<br />
discovering oil bearing sands in <strong>the</strong> Kopili, Sylhet, Tura and lower Gondwana reservoirs. The<br />
well is expected to take approximately 25 days to drill.<br />
This well is part of <strong>the</strong> minimum w<strong>or</strong>k program commitment by <strong>the</strong> cons<strong>or</strong>tium. The joint<br />
venture is committed to drill 6 additional wells as part of <strong>the</strong> Phase-1 Production Sharing<br />
Contract (PSC) commitment. The execution of <strong>the</strong> remaining w<strong>or</strong>k program will be finalised<br />
on obtaining f<strong>or</strong>estry land approval f<strong>or</strong> its remaining locations.<br />
Previously, three wells were drilled by Oil & Natural Gas C<strong>or</strong>p<strong>or</strong>ation Limited (ONGC) on this<br />
block; one of which had shows of oil and gas from multiple reservoirs. The prospect is a fault<br />
bounded closure of about 2 km 2 and is located approximately 12km n<strong>or</strong>th-west from <strong>the</strong><br />
recent ONGC discovery, Kasomarigaon-2, that tested at 604 bopd and around 400 Mscfd<br />
from <strong>the</strong> Bokabil f<strong>or</strong>mation.<br />
The Best Estimate of gross prospective resource, as certified by Gaffney, Cline & Associates<br />
(Consultants) Pte. Ltd, in <strong>the</strong> CPR dated 22nd November 2010, is 6.6 mmbls with a geological<br />
chance of success estimated by <strong>the</strong> cons<strong>or</strong>tium of 14%.<br />
<strong>Jubilant</strong> through its subsidiary, <strong>Jubilant</strong> Oil and Gas Pvt Limited, holds a 10% participating<br />
interest in this block and is <strong>the</strong> Operat<strong>or</strong>. <strong>Jubilant</strong> Securities Private Limited (JSPL), a<br />
company in <strong>the</strong> wider <strong>Jubilant</strong> <strong>Bhartia</strong> <strong>Group</strong>, also holds 35% participating interest in this<br />
block. <strong>Jubilant</strong>, through its subsidiary, <strong>Jubilant</strong> Energy (Nelp-V) Pvt Limited, has entered into<br />
a business transfer agreement dated 1 April 2007 with JSPL f<strong>or</strong> acquiring its entire stake in<br />
<strong>the</strong> block. This transfer is subject to, inter alia, <strong>the</strong> parties obtaining consents from various<br />
third parties, including <strong>the</strong> management committee under <strong>the</strong> relevant Production Sharing<br />
Contract and <strong>the</strong> Government of India.<br />
The o<strong>the</strong>r partners in <strong>the</strong> acreage are Gujarat State Petroleum C<strong>or</strong>p<strong>or</strong>ation Limited with 20%<br />
and GAIL India Limited with 35% Participating Interest.<br />
A copy of this announcement, including a map of <strong>the</strong> area and <strong>the</strong> well location, shall sh<strong>or</strong>tly<br />
be made available on <strong>the</strong> Company’s website, www.jubilantenergy.com.
F<strong>or</strong> fur<strong>the</strong>r inf<strong>or</strong>mation please contact:<br />
<strong>Jubilant</strong> Energy<br />
Ajay Khandelwal, Vipul Agarwal, Rini Kalra<br />
+91 120 402 5700<br />
Evolution Securities +44 20 7071 4300<br />
Rob Collins, Mat<strong>the</strong>w Tyler<br />
Renaissance Capital +44 20 7367 7777<br />
Hasnen Varawalla, Simon Mat<strong>the</strong>ws<br />
College Hill +44 20 7457 2020<br />
Simon Whitehead, Nick Elwes<br />
Qualified Person:<br />
Max Birley, BSc in Geological Geophysics, <strong>the</strong> Company's Chief Operating Officer, has 29<br />
years' experience in <strong>the</strong> international expl<strong>or</strong>ation and production industry. He has reviewed<br />
and approved <strong>the</strong> technical inf<strong>or</strong>mation contained in this announcement pursuant to <strong>the</strong> AIM<br />
guidance note f<strong>or</strong> mining and oil and gas companies.<br />
About <strong>Jubilant</strong><br />
<strong>Jubilant</strong> Energy N.V. is a holding company f<strong>or</strong> a group of companies engaged in <strong>the</strong> upstream<br />
oil and gas expl<strong>or</strong>ation and production sect<strong>or</strong> with a p<strong>or</strong>tfolio of interests in expl<strong>or</strong>ation,<br />
development and production assets. The group holds interests in nine blocks in India, one of<br />
which is a producing field, one of which is under appraisal and development and <strong>the</strong> rest of<br />
<strong>the</strong> blocks are in various stages of appraisal and expl<strong>or</strong>ation. The group has sole operat<strong>or</strong><br />
responsibilities in six of <strong>the</strong>se blocks.<br />
<strong>Jubilant</strong>’s principal strategy is to create sustainable shareholder value by building and<br />
exploiting its diverse p<strong>or</strong>tfolio of expl<strong>or</strong>ation, development and producing oil and gas assets<br />
focusing primarily on India. In particular, <strong>Jubilant</strong> will seek to monetise <strong>the</strong> value of its<br />
reserves and convert its resources to reserves through focused and economical appraisal and<br />
development. The Company intends to seek to maintain a balanced p<strong>or</strong>tfolio of production,<br />
development and expl<strong>or</strong>ation assets, with diversity across fields and basins, hydrocarbontype,<br />
as well as a diverse set of risk/reward profiles.<br />
The Company listed on AIM on 24th November 2010 and is part of <strong>the</strong> <strong>Jubilant</strong> <strong>Bhartia</strong><br />
<strong>Group</strong>, a prominent diversified Indian business group founded by Shyam <strong>Bhartia</strong> and Hari<br />
<strong>Bhartia</strong> with a presence in over 65 countries and revenues of around US$1 billion f<strong>or</strong> FY 2010