Jacka: Jacka Resources cashed up to progress African oil and gas work

Jacka Resources (ASX:JKA) has raised $2.85 million to repay debt and fund further development and exploration for its African oil and gas projects.Proceeds from the fully underwritten Entitlement Offer are in addition to its recent $1 million placement as well as US$12 million farm-out of its remaining 15% interest in the Odewayne Block in Somaliland to Sterling Energy (LON:SEY).This allows the company to focus on progressing the Aje Field offshore Nigeria towards a decision for the initial phase oil development.Jacka has a 5.0006% revenue interest and a 6.675% contributing interest in the Aje Field, which hosts Best Estimate Contingent Resources of more than 200 million barrels of oil.The joint venture is currently reviewing development financing options ahead of a Final Investment Decision in mid-2014.Jacka will also participate in further appraisal of the Hammamet West field (Jacka 15%) in the Bargou Block offshore Tunisia.The joint venture is currently planning to appraise the field in the first quarter of 2015 by drilling a second sidetrack from the Hammamet West-3 well. This will seek to establish a sustained flow from the fractured Abiod Formation reservoir.Separately, the company is carrying out a review of its operations to achieve a reduction in operating costs of approximately 20% and the restructuring and reduction of the board to three directors.Upon completion of the capital raising and repayment of unsecured loans, Jacka will hold approximately $11.3 million in cash resources. Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.