Jura Announces Release of Interim Filings and Settlement of Disputes with Petroleum Exploration (Private) Limited
Marketwired
CALGARY, ALBERTA--(Marketwired - Aug 15, 2016) - Jura Energy Corporation (JEC.TO) ("Jura" or the "Corporation") today announced the filing on SEDAR of its condensed consolidated interim financial statements as at and for the three and six months ended June 30, 2016 and 2015, and its management's discussion and analysis for the second quarter of fiscal year 2016.
Further, Jura announces that its wholly-owned operating subsidiaries Frontier Holdings Limited ("FHL") and Spud Energy Pty Limited ("Spud") have successfully entered into a settlement arrangement for the full and final settlement of various disputes with Petroleum Exploration (Private) Limited ("PEL").
PEL is the operator of the Badin IV North and Badin IV South Exploration Licenses and the Badar, Ayesha and Kandra Development and Production Leases. In connection with the settlement of the disputes, FHL, Spud and PEL have agreed to the following:
the two arbitration matters between FHL and PEL before the International Chamber of Commerce (the "Arbitrations") have been withdrawn;
each party shall bear its own legal and other costs with respect to the Arbitrations and the settlement, and neither party shall claim reimbursement of such costs from the other party;
PEL has irrevocably withdrawn the previously disclosed default notice and forfeiture notice served to FHL with respect to the Badin IV South Exploration License ("Badin IV South");
PEL has irrevocably withdrawn the application submitted to the Government of Pakistan seeking assignment to PEL of FHL's working interest in Badin IV South (the "Forfeiture Application");
PEL has agreed to pay certain current and future exploration and development costs attributable to FHL's working interest share of expenditures under the Kandra Development and Production Lease and the Badin IV North and Badin IV South Exploration Licenses;
PEL has agreed to pay certain development costs attributable to FHL's working interest share of expenditure in the Ayesha Development and Production Lease and the Aminah and Ayesha North gas discoveries in Badin IV South;
PEL has agreed to carry a certain percentage of FHL's working interest in the drilling of an exploration well in the Kandra Development and Production Lease;
FHL have agreed to waive their audit rights in relation to certain past costs;
Spud has agreed to sell its working interest in the Badar Mining Lease to PEL for cash consideration payable upon completion of the transfer, which is subject to customary approvals in Pakistan; and
FHL has agreed to transfer its entire working interest in the Kandra Development and Production Lease and assign its interest in Kandra Power Company ("KPC") to PEL.
Pursuant to the terms of the settlement, Jura has recognized a provision for loss on settlement amounting to US$ 7.6 million in its condensed consolidated interim financial statements as at and for the three and six months ended June 30, 2016. However, in addition to the longer-term benefits to Jura, the immediate benefits of the settlement are:
the withdrawal of the Arbitrations which were costly and time-consuming and would have taken substantial additional time to enforce in Pakistan, upon successful awards;
PEL's withdrawal of the Forfeiture Application relating to Badin IV South which was leading to substantial delays in commercialisation of the recent discoveries;
the Corporation will now participate in the development of the three existing Badin IV South gas discoveries but will not be required to fund: (a) its full share of previous expenditures in two of the successful exploration wells; (b) a certain amount of the expenditures incurred in the development of the three gas and condensate discoveries; and (c) the under-advance balance of its joint venture accounts for Badin IV South and Badin IV North as of the date of settlement;
PEL will carry FHL's entire working interest share of expenditures in an exploration well in the Badin IV North Exploration License planned for drilling in Q4 2016; and
the settlement does not result in any cash outflow for FHL, Spud or Jura.
"I am pleased with the settlement arrangement agreed with PEL. Jura will now focus on building its business, starting with the development of three gas and condensate discoveries in the Badin IV South exploration license area, and targets first gas from these discoveries by the end of Q2 2017. The commercialization of these gas discoveries is expected to transform the Company into a profitable and cash-generative business," commented Shahid Hameed, Jura's Interim Chief Executive Officer.
About Jura Energy Corporation
Jura is an international energy company engaged in the exploration, development and production of petroleum and natural gas properties in Pakistan. Jura is based in Calgary, Alberta, and listed on the TSX trading under the symbol JEC. Jura has applied to the TSX to voluntarily delist its common shares and has applied to the TSX Venture Exchange ("TSX-V") to list its common shares on the TSX-V pursuant to the streamlined listing procedure prescribed by TSX-V Policy 2.3 for companies transferring from the TSX as disclosed in Jura's press release dated July 21, 2016. Jura conducts its business in Pakistan through its wholly-owned 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", and similar expressions are used to identify forward looking information. Specific forward-looking statements in this press release include statements (express or implied) relating to the transfer of Spud's working interest in Badar to PEL, the payment of cash consideration from PEL to Spud therefor; the transfer of FHL's working interest in the Kandra Development and Production Lease and assignment of FHL's interest in KPC to PEL; the payment of certain exploration and development costs attributable to FHL's working interests in Kandra, Badin IV North and Badin IV South by PEL; the sharing of certain future costs between PEL and FHL, including carry obligations; the development and commercialization of gas and condensate discoveries in Badin IV South; and the Corporation becoming a profit making and cash-generative entity.
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 statement 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. 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, 2015, available on SEDAR at www.sedar.com, for a description of the risks and uncertainties associated with Jura's business.
