CALGARY, Jan. 22 /CNW/ - Jura Energy Corporation ("Jura" or the
"Company") is pleased to announce that on the 16th January 2007 the Government
of Pakistan, Ministry of Water and Power, (Private Power & Infrastructure
Board) ("PPIB") issued a formal Letter of Interest ("LOI") to the Kandra Power
Company Ltd. ("KPC") for a 120 Megawatt ("MW") Combined Cycle Power Facility
located at Sukkur in the Northern Sindh Province of Pakistan.
Under the terms of the LOI the KPC, which is owned jointly by Pakistan
Petroleum (Pvt) Ltd. ("PEL") (50%) and Jura (50%), will be responsible for the
preparation of a detailed engineering study leading to the refurbishment of
the existing Sukkur Power Station to include the installation of new
co-generation turbines and associated infrastructure.
The KPC has posted a performance guarantee of US$1,000 per MW. The
performance guarantee will be held by the PPIB against completion of the
detailed engineering study by the KPC, which Jura expects will be commissioned
shortly and which is required to be completed within a period of nine months.
The study shall include an environmental impact assessment, power house
design, load flow and stability factors, transmission lines and associated
infrastructure, together with costs, economics, financing and tariff
Under a Field Development Plan that had been previously approved by the
Government of Pakistan, Ministry of Petroleum & Natural Resources, the power
station will be fuelled by low-btu gas supplied from the Kandra Field, blended
with pipeline quality gas to be purchased from the Sui Southern Gas Company
Limited ("SSGCL"). The gas from the Kandra Field will provide over 50% of the
heating value required to operate the facility. SSGCL has committed to the
supply of 5 MMcf/d of pipeline quality gas, sufficient to power a 60MW
facility. A request for the supply of an additional 5MMcf/d is pending. In the
event that additional grid gas is not immediately available, then the facility
will be refurbished in two phases of 60MW.
Jura holds a 37.5% participating interest in the Kandra Field Development
through its wholly owned subsidiary, Frontier Holdings Limited; other
participants are PEL (37.5%) and Government Holdings (Private) Ltd. (25%).
In 2007, PEL and Jura commissioned ENAR Petrotech Services to conduct a
FEED (Front-End Engineering & Design) study for the Kandra Field Development
project. The study included the gas process design, and the determination of
plant location, pipeline metallurgy, and routing. The study is in the final
stages of completion.
Jura and PEL have also been in discussions with several international and
Pakistani banks who are interested in providing debt financing for the
refurbishment of the power station.
Nigel McCue, President and CEO of Jura said, "We are pleased to have
achieved this milestone in the redevelopment of the Sukkur Power Station. We
are looking forward to continuing to move the project forward with the full
support of our partner, PEL, and the Government of Pakistan."
Jura conducts business in Pakistan through its subsidiaries Frontier
Holdings Limited and Pyramid Energy International Inc., and through its 50%
interest in the KPC.
Jura Energy Corporation is an international energy company engaged in the
exploration, development and production of petroleum and natural gas
properties with activities conducted exclusively in Pakistan. Jura is based in
Calgary, Alberta, and listed on the Toronto Stock Exchange trading under the
Forward-looking statements: This document contains statements about
expected or anticipated future events and financial results that are
forward-looking in nature and, as a result, are subject to certain risks and
uncertainties, such as general economic, market and business conditions, the
regulatory process and actions, technical issues, new legislation, competitive
and general economic factors and conditions, the uncertainties resulting from
potential delays or changes in plans, the occurrence of unexpected events, and
the Corporation's capability to execute and implement its future plans. Actual
results may differ materially from those projected by management. For such
statements, we claim the safe harbour for forward-looking statements within
the meaning of the Private Securities Legislation Reform Act of 1995.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
For further information:
For further information: Mr. Nigel McCue, President & CEO, Mr. Graham
Garner, Executive Vice President, Tel: (403) 266-6364, Fax: (403) 266-6365,
Website: www.juraenergy.com, E-Mail: firstname.lastname@example.org