CALGARY, Alberta, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Jura Energy Corporation ("Jura" or the "Company") is pleased to announce that it has received a highly favorable ruling in its International Chamber of Commerce (“ICC”) arbitration proceedings involving Jura’s operating subsidiaries, Spud Energy Pty Limited (“Spud”) and Frontier Holdings Limited ("FHL”) (together the “Claimants”), and Petroleum Exploration (Private) Limited (“PEL”), the operator of the Badin IV North and South blocks (together the “Badin Blocks”).
As previously disclosed by Jura, in 2022, PEL attempted to invoke the forfeiture of FHL’s 27.5% working interest in the Badin Blocks for alleged non-payment of cash calls. The Claimants disputed PEL’s actions and the cash calls and initiated two arbitration proceedings against PEL. The first arbitration, under the terms of a Settlement Agreement dated August 12, 2016 (the “Settlement Agreement”), has been resolved in favor of the Claimants.
In a final arbitral award (subject only to reservation on costs), the ICC Arbitration Tribunal rendered a written decision declaring, among other things, that: (i) neither Spud nor FHL breached any of the terms of the Settlement Agreement in the manner alleged by PEL, (ii) PEL did breach the terms of the Settlement Agreement, (iii) FHL continues to be a 27.5% working interest owner in each of the Badin Blocks, (iv) PEL is not entitled to seek forfeiture of FHL’s working interests in the Badin Blocks, (v) FHL is awarded damages against PEL in the sum of approximately US$2.48 million, plus interest at a rate of 2% per month on a compound basis, representing sums that should have been paid but were not paid to FHL relating to gas sale invoices in respect of Badin IV South for the period from November 2022 to July 2023, (vi) FHL is entitled to be paid any sums due to it pursuant to any gas sale invoices in relation to Badin IV South from August 2023 onwards along with interest thereon in like manner as aforesaid. The Arbitral Tribunal has also dismissed PEL counterclaims of approximately US$483 million. In short, the ICC Arbitration Tribunal ruled in favor of FHL and Spud on all their requested reliefs.
The estimated amount of damages and interest thereon awarded to the Claimants as of the date of the arbitral award is approximately US$5 million and US$2 million respectively. Interest will continue to accumulate on the amounts awarded until the time of the Claimants’ receipt of damages and interest.
Jura is working with its legal team to pursue enforcement of the arbitral award against PEL. Enforcement will necessarily require pleadings to be made in Pakistani Courts. While Jura is highly confident of achieving enforcement of the declarations, the legal process is likely to extend into the medium-term. Jura anticipates providing shareholders with updates to the enforcement process as major milestones are achieved. In addition, once Jura regains regularized access to operating and production information for the Badin Blocks, Jura anticipates being able to provide an update on remaining reserves for the Badin Blocks.
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-V trading under the symbol JEC. Jura conducts its business in Pakistan through its 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 "will", "approximately", and similar expressions are used to identify forward looking information. Specific forward-looking statements in this press release include information regarding the estimated amount of damages and interest thereon, the ability of Jura and anticipated timeline to enforce the arbitral award against PEL, Jura regaining regularized access to operation and production information for the Badin Blocks, and well as an update on the reserves information for the Badin Blocks.
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. These assumptions and risks include, but are not limited to: uncertainty relating to the outcome of arbitration in which Jura and its subsidiaries are involved, the risks associated with the oil and gas industry in general such as operational risks in exploration, development and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the imprecision of resource and reserve estimates, assumptions regarding the timing and costs relating to production and development as well as the availability and price of labour and equipment, weather, volatility of and assumptions regarding commodity prices and exchange rates, marketing and transportation risks, environmental risks, the ability to access sufficient capital from internal and external sources, changes in applicable law, and risks resulting from the potential for ongoing or future global pandemics and their effects on general economic conditions and public markets, Jura’s business, and the ability of Jura to prepare and approve required filings in a timely manner. Additionally, there are economic, political, social and other risks inherent in carrying on business in Pakistan. 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 Management’s Discussion and Analysis for the year ended December 31, 2023, available on SEDAR+ at www.sedarplus.ca, for further description of the risks and uncertainties associated with Jura's business.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mr. Nadeem Farooq, CEO
Tel: +92 51 2270702-5
Fax: +92 51 227 0701
Website: www.juraenergy.com
E‐Mail: info@juraenergy.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
