Ø High potential area identified and captured by Jacka, now successfully farmed out to Genel and Sterling
Ø “Odewayne Block” PSA
Ø 22,000 km2 concession covers Somaliland Blocks SL6, SL7(partial) and SL10(partial)
Ø PSA signed 2005
Ø No previous tenure (pre-1989 Force Majeure)
Ø Jacka has an option over 5% equity in the licence
Ø Genel operate adjacent block
Ø Airborne gravity/mag acquisition program
Ø 1,000km 2D seismic survey
Ø 1 well
 
Ø Same basin system as Yemen producing basins

Somaliland Political History

Somaliland was a British protectorate (British Somaliland) from 1884 until 1960. Somaliland gained its independence from Britain in June 1960, then joined Italian Somalia in July 1960 to form the Somali Republic. The union between the Somalia & Somaliland deteriorated into a civil war between 1980 and 1991.

After the collapse of the Somali regime, Somaliland withdraw from the union with Somalia and reinstated its sovereignty. An internationally monitored referendum on the constitution confirmed the people’s wish to re-gain independence.

For reasons beyond its control, Somaliland is not yet recognised as an independent state by any country or international organization. However, Somaliland is widely acknowledged as having established a stable and democratic government over the last 21 years, in effective control of its territory.

Odewayne — Exploration Potential

 

Odewayne Block, Somaliland (5% buy-in right)

As previously advised, Jacka retains an option to acquire a 5% participating interest in the Odewayne Block. That option can be exercised on the earlier of (1) the proposing of a second well under the Production Sharing Contract (PSC), or (2) the parties entering into the Fifth Period of the PSC.

The Odewayne PSC is currently in its Third Period (which expires in November of this year). The minimum work obligation for the Third Period was satified in August last year with the completion of a 1000Km 2D seismic campaign.