Jadestone Energy fulfils all conditions for Lemang PSC acquisition

LONDON: Jadestone Energy Inc. announced that all conditions required to complete its proposed acquisition of an operated 90% interest in the Lemang production sharing contract, onshore Indonesia, are now satisfied.

This includes receipt of governmental approval of the assignment of the interest and of Jadestone’s appointment as operator, and other consents required under the Lemang PSC joint operating agreement.

Jadestone, as buyer, and Mandala Energy Lemang Pte Ltd (the “Seller”), will now proceed to close the transaction, which will become effective upon the Seller confirming receipt of the US$12 million purchase consideration.  This is anticipated to occur within the coming days.

Paul Blakeley, President and CEO commented: “I am delighted to complete our acquisition of the Lemang PSC, and to re-establish our operating presence in Indonesia.  

The asset adds balance and diversity to our portfolio and creates an opportunity to develop high-value gas for an energy-hungry region; a region which is otherwise increasingly dependent on coal to meet its growing energy needs.

“We will maintain a measured pace toward development spending, but look forward to resuming investment into a jurisdiction and basin we know well, through our team’s prior involvement in the South Sumatra region.”

Through the secondment of Jadestone personnel into the Seller’s organisation, leading up to deal completion, the Company has already begun work to instill the Jadestone operating philosophy and efficiency-oriented culture. 

Key discussions are also underway in respect of future gas sales arrangements, so as to commercialise the Lemang PSC’s 2C resources of 55.2 bscf sales gas, 2.2 mm bbls of condensate, and 5.8 mm boe of liquid petroleum gas1, as efficiently as possible.

Jadestone Energy Inc. is an independent oil and gas company focused on the Asia Pacific region. It has a balanced, low risk, full cycle portfolio of development, production and exploration assets in Australia, Indonesia and Vietnam.

 The Company has a 100% operated working interest in the Stag oilfield and the Montara project, both offshore Australia. Both the Stag and Montara assets include oil producing fields, with further development and exploration potential.

The Company also has a 100% operated working interest in two gas development blocks in Southwest Vietnam, and an operated 90% interest in the Lemang PSC, onshore Sumatra, Indonesia, which includes the Akatara gas field.

In addition, the Company has executed a sale and purchase agreement to acquire an operated 69% interest in the Maari Project, shallow water offshore New Zealand, and anticipates completing the transaction in H1 2021, upon receipt of customary approvals.

Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman’s business in Asia, the Company is pursuing an acquisition strategy focused on growth and creating value through identifying, acquiring, developing and operating assets in the Asia Pacific region.

Jadestone Energy Inc. is listed on the AIM market of the London Stock Exchange. The Company is headquartered in Singapore. www.jadestone-energy.com

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