Published On: Mon, Apr 2nd, 2012

Jacka Resources targets oil in Somaliland, exploration to start in current quarter

Jacka Resources (ASX: JKA) has acquired a highly prospective oil exploration block in Somaliland, East Africa, that is on trend with the prolific producing basins of Yemen that hold 9.8 billion barrels of oil equivalent.

The company will hold a 50% operating stake in the 22,000 square kilometre Habra Garhajis block , where a working petroleum system appears to be demonstrated by 9 independently verified oil seeps.

Geochemical analyses of these seeps indicate a light oil or condensate that is consistent with the oils produced in Yemen.

Jacka’s partner Petrosoma has an established in-country office and team that will provide immediate operational capability.

The joint venture has scheduled an aggressive work program starting with the acquisition of a comprehensive gravity and magnetics dataset in the second quarter of 2012.

Jacka will also be required to shoot at least 500 kilometres of 2D seismic.

Habra Garhajis is 1 of 3 Jurassic rift basins in the Horn of Africa that are continuations of the Jurassic rift basins of Yemen, and its geology is expected to be very similar.

The entire East African region is the subject of an increasingly strong and competitive industry focus with companies such as BG, Ophir, ENI, Africa Oil, Anadarko, Total, CNOOC and others taking positions.

Recent finds such as Anadarko’s giant 30 trillion cubic feet gas discovery in the Rovuma Offshore Area 1 in Mozambique, large gas discoveries by BG and Eni as well as an oil find by African specialist Tullow Oil have all served to fuel interest in the region.

Source:Proactive Investors

  • kuluc

    why these oil companies calling our national recource some tribal names ? the region is called DAADMADHEED or TOGDHEER or give it some other name because this could cause that conflict between the somaliland clans, these oil companies think that somliland people are fools,

    our goverment must change the blocks name into regional name before its too late.

    • amal

      That's true, they should just use regional names. But I think what they mean the garxajis block is not just togdheer block but a 'triangle block' from saaxil->sanaag ->togdheer. Maybe they can invent a new name for it.

    • all somali R 1

      why these oil companies calling our national recource some tribal names ? the region is called DAADMADHEED or TOGDHEER or give it some other name because this could cause that conflict between the somaliland clans, these oil companies think that somliland people are fools,

      our goverment must change the blocks name into regional name before its too late.:) Thanx brother Kuluc you are right this is what our ppl must know, very (IMPORTANT).

  • osman5

    I didn't understand what's the rush here of offering this company a 50/50 venture. If we've done our homework diligently we could of obtain a number of other companies that would do it less than a 50/50.
    Am I sensing a desperation in our government?

    A rumor has it that Puntland had offered the Africa oil corp. for 70/30 to carry on a drilling afford. 70% is being the allocation for the oil company. I can understand that the warlords in Garowe need a quick cash grab to stay afloat and the oil Company is taking advantage of the circumstance but we're not in a dire situation for oil exploration now to give a company 50/50 holding stake.

    Osman Qaal

    • abdirahman

      50/50 is good deal , Arab countries had 20/80

  • mohamed cheers

    Is this another April fool fantasy?
    Cheers.

    • amal

      what's wrong with it? is it the 50/50 deal
      inshAllah we will bear the fruit or find a better deal

    • Ayadrus

      No this is not a joke as the announcement is already on the ASX (Australia Stock Exchange) I live in the same city as this company and all is legit but I don't know much about the PERTOSOMA, which must a local somaliland owned company i think.

      • Mohamed

        that is right walal, this company called petrosoma is owned by somaliland born british bussinessman called mohamed yousuf Ali guray

    • saalax ali

      it looks like.

  • Saraar

    Silanyo is trying to impress the Garowe pirates by joining a deal with any little oil company! Our people must stop the fake deals!

  • Abdirashid Muse

    ridiculous! you are unaware or misled, stop rubbishing the Puntlanders as pirates , if you are not escaping from the reality and being pragmatic, trace back and research he history and role of Puntlanders in Somalia and drilling operation in Puntland territories as well as the terms of the contract of oil drilling in Puntland ,i think you cannot differentiate between the working interest and sharing of the oil returns.

    i can understand what prompted you such contract you and also such comments , since the announcement of Puntland oil drilling , fears have been prevailing in Somaliland, i have just rutuned from Hargeisa in few days ago , you are saying , Stronger Puntland is emerging, they are here, they are coming and other scaring words , please we are your brothers and your development is ours, we are one people, we need to think beyond our internal affairs and deal with other dangerous issues that will affect our interests and our coming generation.collaboration is the best policy.thank you

    • isse

      Well said!

    • Madar

      Abdirashid,

      Collaboration is all well and good but only when you stop all piracy that has ruined the name of all somalis.

    • Iron

      fear? is not in our dictionary ,puntland is the last entity in our arithmetics,we have made you believe in our plan,which i will not disclose herein,now we are dragging you to the slaughter-house

    • We r all 1 ppl

      ridiculous! you are unaware or misled, stop rubbishing the Puntlanders as pirates , if you are not escaping from the reality and being pragmatic, trace back and research he history and role of Puntlanders in Somalia and drilling operation in Puntland territories as well as the terms of the contract of oil drilling in Puntland ,i think you cannot differentiate between the working interest and sharing of the oil returns.

      i can understand what prompted you such contract you and also such comments , since the announcement of Puntland oil drilling , fears have been prevailing in Somaliland, i have just rutuned from Hargeisa in few days ago , you are saying , Stronger Puntland is emerging, they are here, they are coming and other scaring words , please we are your brothers and your development is ours, we are one people, we need to think beyond our internal affairs and deal with other dangerous issues that will affect our interests and our coming generation.collaboration is the best policy.thank you May Allah Bless Your great mind Brother We r all one ppl, and thats whats going 2 be 4 ever Even If they keep hating.

      • Abraham

        Well said brother, but the suspicion and concerns the Somalilanders have about Puntland is legitimate as nothing but only trouble and threats come to us from the Puntland leaders and people since its inception in 1997. You don’t see Somaliland worrying about Djibouti, do you?

      • amal

        We don't hate you walalo, we just don't like puntland's constant meddling with our internal affairs. When it comes to politics we are tug of war with each other, but I'm sure we can pause our games and work together as sister states even though Somalis don't know how to work together.

  • Maaydhaane

    It says in the article that the exploration for oil in the block will commence in this quarter. I'm assuming that would be in the next 2-3 months. Why hasn't the Minister of Natural Resources, Water and Energy not commented on this news.

    I don't think we are in a position to demand more then a 50/50 deal, seeing as we live in a volatile region and making this kind of investment would be a very risk venture for an Oil company.

    I'm surprized by some of the comments above, there is a crippling poverty back home and hundreds of our youth are dying every year in fruitless attempts to reach the West. We shouldn't be looking at the fine print this early in the game, any kind of reasonable investment should be welcomed that can make a difference in the lives of Somalilanders.

    • Abraham

      I agree

  • Khadar

    no comment we wil see the fruits in some time

  • Adam

    The first thing* the government….

  • ayaan

    Right thats it….I am returning to somaliland permanently for a share of the oil!!! However if large barrels of oil is found just pray that the somali people would not change into xaasids like the Arabs and help our brothers and sisters around the world for good cause.

    • Adam

      I second that

  • Hassan

    @ Abdirashid

    Cooperation is good and I'm happy to hear that from some one from Pirateland. But saying Somaliland is fearful of Pirateland is only a fantasy of the mindless people in Pirateland.

    • Xarago

      Walaal shame on you why you calling people piretland, Puntland don't want to call you bad name so respect people and your self.

    • saalax maxamed

      well i call you id@@rland That looks nice.

  • Ali1

    Dear all,

    First of all, lets all be realistic and maintain our rational minds!!! I hate this speculative bubble hovering around East Africa.

    Furthermore, I am once again disappointed with this S/Land gov…corrupt and incompetent? I'll let you decide. I donot know why they are allowing this minor so-called exploration company in S/Land? Our nation can do better by seeking joint exploration with experience films like Tullow Oil! and I am certainly sure that this company, Jacka resources and its secret partner Petrosoma, another so-called exploration company with no proven exploration history or energy asserts are only there to speculate and re-sell their "exploration blocks" in S/Land to the highest bider!!!

  • Aydarus

    From my understanding its not 50/50 with Somaliland but rather 50% equity with PETROSOM meaning its the 50% ownership in any assets after all debts associated with that asset are paid off
    This says nothing about what Somaliland has agreed with Jaka but also remember we are all forgetting that the report says that Jaka is the junior investor as it says in the announcement submitted to the Australia Stock Exchange on the 2nd of April 2012. This means that the company doing all the drilling and capacity building is actually PETROSOMA but who are they I can't find much info on them I think they are a Somaliland based comapany.

    • mohamed cheers

      Aydarus..Who;s Ahmed Yusuf..Is he Musa Carre UK rich Big Business ICON owning Petrosoma
      SL based Company?
      Cheers.

      • Jambazi

        No this guy owns a company called Prime resources and this company was given another block near the coastal areas.

  • osman qaal

    Mr. We r all 1 ppl,
    Puntlanders in general are nuances, guess what happens when you poke a friendly grizzly bear for a few times? You get an unforgettable slap in the face, that’s what we should of have done for a long time ago but we opted to be tolerant.
    The thing is you’ve been mingling with our Eastern regions for quite some time now when you shouldn’t have to and that’s an irritant.

    If I get back to the oil business, I heard only a rumor which goes a Canadian oil company is taking Somalia’s natural resources for a dime a dozen rate. Again, it’s a rumor but it made more sense to me because the piracy business is dying slowly. The West has already worked on a way of disassembling it one bit at a time, maybe, it’d last another year or so, and then the rest will be in the history books.

    You’re probably wondering why I am interested in Puntland’s affairs. You probably heard the saying goes: keep your friends close and keep your enemies closer? That’s why; I can’t let you be out of my sight for a minute.

    Osman Qaal

  • dirye

    we need better life and development irrespective of labels, but what is wrong with that if oil tycoon , a billionaire man from Garxajis had invested in it to change life for better.

  • amal

    The Somali people need to be careful that they don't cheaply give away their natural resources whilst they are on each other's throats. Somaliland and Somalia are rich in resources but oil companies can easily exploit their weak position and loot them. Somalia is in a crisis and oil companies can easily struck a cheap deal with puntland. The same thing goes for Somaliland because Somaliland is not recognized fully. Even though the 50% deal is not too bad for a start for a poor country who is not formal member of the UN. I think most of the Arab countries retain at least 60% stake approximately. But once we get in and become more competitive we can demand higher shares. Another thing is, it has to be managed properly if we want to see any fruit. So inshAllah khair and may Allah bless it.

    For general information:
    The block 26 is actually south west of Somaliland (comprising parts of togdheer, hawd and parts of maroodi jeex). block 26 was an area known as habra-garhajis during the British colonial times.
    Even though it doesn't mean anything, we should know our Somali nature better and to avoid any possible misunderstandings come up with another new fancy name or keep it as block 26. But lets not jump into wrong conclusion.

  • Abraham

    There should be no fuss made about names given to oil exploration blocks. A name does not give a Somaliland tribe anymore advantage or benefit when oil is drilled in its grazing territory. Somaliland's natural resources belong to all Somalilanders, and the name of the exploration block should be seen just as a celebration of our tribes and peoples. Insha Allah, when mining companies arrive in Somaliland in the near future, we will celebrate the names of many more of our great tribes in this way. May Allah Almighty bless Somaliland and its people.

    • amal

      That's true but our people got twisted minds so we have to be careful. I don't want to see emerging areas or blocks named after tribes walalo, we already seen a tribal tension in SLPress. Somalis make a fuss about small things that's why i felt uneasy about it even though I'm garhajis myself.

    • Jambazi

      This block was named by the British colonial rulers in 1920. The Briitish did some exploration back then and drilled nine wells of which they abondon. May be, at that time there was first world war and the war with mad mullah, hence, the British thought the project was feasable. But one thing for sure there are plenty of oil in Somaliland because in many places in Somaliland there are oil seepages.

  • wacad

    habar garhajis block,what next habar xabuusheed block. the war of resources in east africa is eminent as experts predicted before. we need to be careful using these tribal names on national resources

  • mohamed cheers

    Call them anything but that should bring jobs and wealth for all the JSL.
    Cheers.

  • Jambazi

    Puntland is pirateland there is no doubt about that. And majority of pirates are puntlandars and people from hobiyo in galmudug. So take away your crocodile tears and no one will buy the notion that all somalies live in pirateland in harmony that is a big lie. It wasn't when the authorities in pirateland arrested and shipped all people from southern somalia.

    • saalax maxamed

      NO your wrong most of parites come from galmudug.you have desease call puntland take you tablets.

  • Gobaad

    The land and the Natural Resources belongs to all Somalilanders and managed by the government. But it does not belong to tribe or region. When it is explored, the wealth should benefit all Somalilanders such as job creation, water reservation, infrastructure, education, health, and building strong military.

    Lately, we have seen exploration companies one after the other all exploring oil, but I will believe it when I see it actually working. It will then be majestic and euphoric. In the main time, let us wait and see and not to put our hopes too high to avoid disappointment.

  • Mohamd

    Tribal names actually increase the feelings of ownership for the people in the country. It is used for a positive purpose unlike people living abroad whose only obsession is taking their frustrations on each other by confusing tribal names with ethnic names.

    The city of Naples was named after the first family that occupied the location and I don't see people requesting that the name be changed since it does not represent the names of all other peoples.

  • Burcawii

    Guys,

    I noticed that we spent more time and energy talking about changing the name rather than celebrating this good news. As a proud Somalilander, I’m kind of disappointed in all.

    In my openion, talking about it will only create and increase tention.

  • ayanle

    They should take care of the land to cause the land is what we all got respect the land love the land and the sea we all should always take care of our wonderful land " THE LAND OF SOMALILAND I LOVE MY LAND"

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