SINGAPORE: Jadestone Energy plc, an independent oil and gas production company focused on the Asia-Pacific region, has executed a sale and purchase agreement with Japan Australia LNG (MIMI) Pty Ltd to acquire the Seller’s non-operated 16.67% working interest in the Cossack, Wanaea, Lambert, and Hermes (CWLH) oil fields development, offshore Western Australia, for a total initial cash consideration of US$9 million, and certain subsequent Abandonment Trust Payments.
The acquisition will increase the Company’s non-operated working interest in the CWLH fields from 16.67% currently to 33.33% on completion.
The Company will host an investor and analyst webcast at 09:00 GMT today to discuss the Acquisition, with the webcast details at the end of this announcement.
Paul Blakeley, President and CEO commented: “Since acquiring our initial CWLH interest in November 2022, the subsurface performance has exceeded expectations, validating our work and de-risking the significant upside potential we see across the fields.
As such, we are pleased to be increasing our interest in a very high-quality, long-life asset with low decline rates at an attractive 2P acquisition cost of US$1.7/bbl, or less than US$1/bbl on a 2P + 2C basis. This acquisition also provides us with greater influence over investment decisions on an asset which is expected to be an important part of the Jadestone investment case for years to come.
We intend to fund the acquisition and associated abandonment trust payments through available liquidity, including our reserves-based lending facility, which was structured to accommodate Jadestone’s growth by supporting the acquisition of producing reserves with significant upside potential. Our RBL banks are supportive of this acquisition and recognise the benefits that it will bring to our business, further diversifying our production base and adding barrels which are accretive on all measures.
Flaring from the CWLH fields is minimised due to the export of associated gas to the neighbouring North West Shelf Gas facilities, reducing emissions intensity and further evidencing how our strategy of maximising recovery from existing upstream assets is consistent with our sustainability principles.”