Australia-based oil and gas exploration company Jacka Resources has signed a production sharing agreement (PSA) with the government of Tanzania for the Ruhuhu Block.
The Ruhuhu Block is located in south western Tanzania near Lake Nyasa.
Under the PSA, Tanzania government has issued the Ruhuhu Exploration License in which Jacka is the operator with 100% initial interest.
As per the PSA terms, the first exploration period is for four years and includes acquisition of airborne gravity and magnetics, a minimum 400km of seismic, and drilling one exploration well.
The survey is expected to begin around the third quarter of 2013 to define basin characteristics and provide input to develop 2D seismic program in 2014.
Upon development of the Ruhuhu exploration license, which is spread on 10,343km² area, the Tanzanian Petroleum Development (TPDC) will take 20% interest in the license.
The Ruhuhu basin, based on the existing gravity survey is estimated to have at least 3,000m of Karoo Sediments, while the mapping of outcrops at the basin margin demonstrates 650m of early Permian K2 sediments.
In addition, the presence of the high TOC sequence suggests potential for both conventional and unconventional oil and gas resources in the basin.