Jacka Resources Ltd : Quarterly Activities Report 31 October 2013

31 October 2013
Quarterly Activities Report
Jacka Resources Limited ("Jacka" or the "Company") is pleased to provide the following quarterly report for the period ending 30 September 2013.
Key highlights in the quarter included:
• The drilling and testing of the Hammamet West-3 well in Tunisia confirmed the presence of open permeable, fractures within the Abiod Formation. The well flows demonstrated the potential for economic production rates. The joint venture plans to return to drill sidetrack 2 and test sidetrack 2 in
1H 2014
• A third party transaction in the Odewayne Block, Somaliland underlines the value of this highly prospective block
• the company successfully completed in July a $3.27 million capital placement to institutional investors and in September a short term loan facility of up to $2.0 million.
Significant activities over the Company's portfolio expected in the next quarter include:
• Plug and suspend Hammamet West-3 and commence planning for the HW-3 Sidetrack-2 drilling and testing, anticipated H1 2014
• Hammamet West resources review by the Operator expected before year end
• Completion of the Field Development Plan (FDP) for the initial phase of the Aje oil development
• planning and preparation for an airborne geophysical survey and other G&G studies across the Ruhuhu license in Tanzania
Bargou Block, Tunisia
Hammamet West-3, located offshore Tunisia (Jacka 15%; operator Cooper Energy ASX:COE) spudded on 4 April, with the objective of confirming oil productivity from the naturally fractured Abiod Formation, through the drilling and testing of a highly deviated wellbore. During the quarter a 432m horizontal sidetrack section (ST-1) was drilled through the Abiod Formation to a total measured depth of 3,443m. Major gas and oil influxes and very large drilling mud losses were experienced during the drilling of the near horizontal well section, indicating that the well had penetrated open hydrocarbon bearing fractures within the Abiod Formation.
Testing of the well commenced in August and confirmed the presence of open hydrocarbon bearing fractures. Flow rates averaging 1,290 barrels of fluid per day for 1.5 hours were recorded during the clean-up flow and oil was recovered to surface but the tests could not be completed because of recurring blockages and obstructions caused by lost circulation material (LCM). The LCM was originally used to control the major mud losses while drilling the sidetrack.

ABN 79 140 110 130

Registered Address: Level 11, London House, 216 St Georges Terrace, Perth WA 6000 AUSTRALIA Postal Address: GPO Box 2517 Perth WA 6831 AUSTRALIA

P: +61 8 9481 0389 F: +61 8 9463 6103 E: info@jackaresources.com.au W: www.jackaresources.com. au

Information gathered from ST-1 demonstrated that the reservoir should be capable of significant flow rates on a clean, unobstructed test. The joint venture therefore decided to pursue this objective through drilling ST-2, using information gained from ST-1 to mitigate the risk of blockages caused by LCM. However, as the current rig, the "GSP Jupiter", could not be secured on acceptable terms for the duration required for a production test the joint venture subsequently decided to release this rig and will contract an alternative rig to drill and test Sidetrack-2. The Operator, Cooper Energy expects ST-2 to be drilled and tested in the first half of 2014, subject to rig availability.
Jacka is greatly encouraged by the results of the Hammamet West-3 well. Hammamet West-3 was drilled on one of the largest structures in the Gulf of Hammamet and successfully intersected significant open fractures with oil shows and recovered oil to surface. While the production test was compromised by LCM blockages, the well flowed at 1,290 barrels per day during clean up and without any acid stimulation. In Jacka's view, this is a very strong indication that with alternative drilling and completion practices the Abiod Formation should be capable of economic flow rates. These results have confirmed the pre-drill fracture model and the resource potential at Hammamet West.
The Operator, Cooper Energy has advised that they are currently reviewing the impact of the well on the resources assessment and expect to make an announcement before the end of 2013.
Aje field / OML113, Nigeria
During the quarter the Aje partners initiated work on a Field Development Plan (FDP) for the Cenomanian oil reservoirs to be delivered by the end of December 2013. The FDP is for the initial development phase and will include:
• Aje-5 well location
• drilling and completion of Aje-5 and re-entry and completion of the previously drilled Aje-4
• complete review of the resources and potential production profiles;
• integration and update of earlier production facilities studies including subsea production studies and inspection and review of available floating production, storage and offloading (FPSO) vessels.
The joint venture has also acquired an option to purchase three new but unused subsea production trees which represent a significant saving in both cost and timing relative to new-builds. These trees are currently being tested to ensure they are suitable for use as part of the initial FDP. The joint venture is also in discussion with rig contractors to identify options for drilling in 2014.
The FDP represents the initial stage of a multiphase development concept with the initial focus on the
Cenomanian oil reservoirs while later phases will target development of the significant shallower, Turonian,
gas/condensate resource to meet the needs of the evolving Nigerian and West African energy market.

ABN 79 140 110 130

Registered Address: Level 11, London House, 216 St Georges Terrace, Perth WA 6000 AUSTRALIA Postal Address: GPO Box 2517 Perth WA 6831 AUSTRALIA

P: +61 8 9481 0389 F: +61 8 9463 6103 E: info@jackaresources.com.au W: www.jackaresources.com. au

Odewayne Block, Somaliland
In the first half of 2013 interpretation of the high resolution airborne gravity and magnetics survey acquired over the entire 22,000 km2 Odewayne Block (Jacka 30%) was successfully completed. The interpretation confirmed the main play elements and is being used to refine the design for a minimum 1,500km 2D seismic acquisition program.
During the last quarter Jacka was advised by Genel Energy Plc, the Operator of both the Odewayne block and the adjacent SL10B/SL13B exploration block (in which Jacka is not a participant), that Genel had temporarily withdrawn its expatriate employees and contractors from Somaliland because of security concerns. Genel is liaising closely with the Somaliland Government to ensure the satisfactory management of the security situation. Genel had been preparing to acquire a seismic survey on block SL10B/SL13B which would be followed in H1 2014 by seismic survey acquisition in the Odewayne block.
Under the terms of the farmout agreement with Genel, Jacka will be fully carried for all exploration expenses incurred through to the end of Exploration Period 4 (May 2016). This includes but is not limited to the minimum work commitments of 1,500 km of seismic acquisition and a well.
Subsequent to the quarter Sterling Energy Plc (http://www.sterlingenergyuk.com) announced that they had joined the Joint Venture after acquiring a 10% equity interest in the project from Petrosoma for staged consideration of US$10 million.
Ruhuhu Basin, Tanzania
Jacka was awarded the 10,343 km2 Ruhuhu Block at a ceremony in Dar es Salaam on 20th March 2013. Jacka has
100% of the block and is Operator of the project.
The Ruhuhu licence is located in south-west Tanzania. It provides Jacka with the petroleum exploration rights to the entire Ruhuhu Karoo rift basin and to a portion of the Lake Nyasa rift basin, part of the East African rift system which holds significant oil discoveries in Uganda and Kenya.
In the September quarter, activities continued to be focussed on collecting geological and geophysical data then the analysis and integration of that data into a geo-referenced database for the two petroleum systems.
The discovery during the quarter of medium-resolution airborne magnetics data, acquired in the 1970s under a World Bank funded project, will allow Jacka to cost-effectively focus the next phase of the Ruhuhu forward work program.
The vintage magnetics data will be processed and interpreted during Q4 2013 to provide a better definition of the internal structure and sub-basins of the Ruhuhu basin. This can then be used to design and locate high- resolution airborne Full Tensor Gravity (FTG) and magnetics surveys targeting individual sub-basins within the Ruhuhu. As a result of the effort to find and work with all the existing data Jacka can achieve an enhanced, basin-wide subsurface structural imaging with a considerable saving in time and cost.

ABN 79 140 110 130

Registered Address: Level 11, London House, 216 St Georges Terrace, Perth WA 6000 AUSTRALIA Postal Address: GPO Box 2517 Perth WA 6831 AUSTRALIA

P: +61 8 9481 0389 F: +61 8 9463 6103 E: info@jackaresources.com.au W: www.jackaresources.com. au

The Ruhuhu Basin is known to contain significant thicknesses of Permian coals as well as carbon-rich black shales. The coals are currently being mined on the shallower basin flanks for electricity generation within Tanzania but may also represent an "unconventional" or coal seam gas (CSG) target. During the quarter, Jacka commissioned a report on the Ruhuhu CSG and shale gas resource potential using recognised experts with expertise in Australian CSG projects. The report is due for completion in Q4 2013.
Corporate
In the period the Company spent approximately $5.8 million furthering appraisal and exploration projects predominantly in Tunisia, Nigeria and Tanzania.
At the end of the period the Company had approximately $2.5 million in cash, investments and in JV bank accounts for various work programs (this amount includes $1.75 million of short term loans drawn by the company).
During the quarter the company announced that it had completed a s.708 institutional placement of 38.5 million fully ordinary shares to raise $3.27 million. In addition the company also issued 19.25 million options exercisable at $0.14.
Subsequent to the quarter, the company announced that it had entered an agreement with its largest shareholder for an initial $3.5 million convertible loan facility.
For more information please contact:

This document has been prepared by Jacka Resources Limited for the purpose of providing an activity update to interested analysts/investors and shareholders. Any statements, opinions, projections, forecasts or other material contained in this document do not constitute any commitments, representations or warranties by Jacka Resources Limited or its directors, agents and employees. Except as required by law, and only to the extent so required, directors, agents and employees of Jacka Resources Limited shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in this document. This document includes certain statements, opinions, projections, forecasts and other material, which reflect various assumptions. The assumptions may or may not prove to be correct. Jacka Resources Limited recommends that potential investors consult their professional advisor/s as an investment in the company is considered to be speculative in nature.

ABN 79 140 110 130

Registered Address: Level 11, London House, 216 St Georges Terrace, Perth WA 6000 AUSTRALIA Postal Address: GPO Box 2517 Perth WA 6831 AUSTRALIA

P: +61 8 9481 0389 F: +61 8 9463 6103 E: info@jackaresources.com.au W: www.jackaresources.com. au

Persons compiling information about Hydrocarbons

Pursuant to the requirements of the ASX Listing Rules 5.11, 5.11.1, 5.12 and 5.13, the technical information provided in this

announcement has been compiled by Justyn Wood , Technical Director of Jacka Resources Limited. Mr Wood is a qualified

geophysicist with over 18 years technical, commercial and management experience in exploration for, appraisal and

development of oil and gas resources. Mr Wood has reviewed the results, procedures and data contained in this

announcement. Mr Wood consents to the inclusion in this announcement of the matters based on the information in the form and context in which it appears.

ABN 79 140 110 130

Registered Address: Level 11, London House, 216 St Georges Terrace, Perth WA 6000 AUSTRALIA Postal Address: GPO Box 2517 Perth WA 6831 AUSTRALIA

P: +61 8 9481 0389 F: +61 8 9463 6103 E: info@jackaresources.com.au W: www.jackaresources.com. au

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Appendix 5B

Rule 5.5

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

Jacka Resources Limited

ABN Quarter ended ("current quarter")

79 140 110 130 30 September 2013

Consolidated statement of cash flows

Cash flows related to operating activities

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation

(b) development

(c) production

(d) administration

1.3 Dividends received

1.4 Interest and other items of a similar nature received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Other (provide details if material)

Net Operating Cash Flows

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

* The cash position excludes unallocated cash in the joint venture account and does not include proceeds from capital raise of $3.27 million completed on 18 July 2013

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

Current quarter

$A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 221

1.24 Aggregate amount of loans to the parties included in item 1.10 -

1.25 Explanation necessary for an understanding of the transactions

1.23 includes salaries and superannuation contributions for all directors

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

+ See chapter 19 for defined terms.

Appendix 5B Page 2 01/05/2013

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

4.1 Exploration and evaluation

4.2 Development

4.3 Production

4.4 Administration

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the

related items in the accounts is as follows.

* The cash position excludes unallocated cash in the joint venture account.

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed

6.2 Interests in mining tenements and petroleum tenements acquired or increased

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

7.11 Debentures

(totals only)

+ See chapter 19 for defined terms.

Appendix 5B Page 4 01/05/2013

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

7.12 Unsecured notes (totals only)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

Sign here: Date: 31 October 2013 (Non- Executive Director)

Print name: Stephen Brockhurst

Notes

1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and

conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 5

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