Acquisition of 10% Interest in Lemang PSC
24 November 2021—Singapore: Jadestone Energy plc (the “Company” or “Jadestone”), an independent oil and gas production company focused on the Asia-Pacific region, is pleased to announce the acquisition of a 10% interest in the Lemang Production Sharing Contract (“PSC”). Through this transaction, Jadestone’s interest (pre local government back-in rights) in the Lemang PSC will increase to 100%.
The 10% interest is being acquired through the execution of a Settlement and Transfer Agreement between Jadestone and PT Hexindo Gemilang Jaya (“Hexindo”). In return for the transfer of Hexindo’s 10% stake, Jadestone will waive unpaid amounts relating to Hexindo’s interest in the Lemang PSC and pay a consideration of $500,000 (inclusive of transfer taxes, which Jadestone will remit directly to the Indonesian government). The transaction is subject to the approval of the Indonesian government, the shareholders of Hexindo and the shareholders of Eneco Energy Limited, Hexindo’s parent company.
The Lemang PSC contains the fully appraised Akatara gas field, the development of which will substitute coal for locally produced gas in power generation, as well as condensate sales and LPG for local residential and domestic use. Once onstream, the Akatara gas field will broaden Jadestone’s production base, as well as increase the proportion of gas in the production mix, thereby reducing the Company’s greenhouse gas emissions intensity.
The field has been independently estimated to contain a 2C gross resource (pre local government back-in rights) of 63.74 bscf of natural gas, 2.45 mm bbls of condensate and 5.64 mm boe of LPG, equating to a combined 18.7 mm boe of resource. The acquisition of the Hexindo interest would add circa 1.9 mm boe of resource, or US$0.26/boe of 2C resource acquisition cost, based on the consideration paid. This compares to the $0.70/boe acquisition cost Jadestone paid for its original 90% interest in the project in 2020.
Paul Blakeley, President and CEO commented:
“We are pleased to announce this acquisition which adds resource to the Company at minimal cost and has the added benefit of removing a defaulting partner.
The Lemang PSC is a key organic growth project for Jadestone and will provide meaningful gas production to the local market; displacing coal-fired power generation. We continue to make significant progress on commercial terms, with negotiations over a fully termed gas sales agreement at an advanced stage, and I would like to thank the buyer and the Indonesian government for their continued constructive engagement. A final investment decision is still expected in H1 2022 with first gas also still on track for H1 2024.”
For further information, please contact:
|Jadestone Energy plc|
|Paul Blakeley, President and CEO||+65 6324 0359 (Singapore)|
|Dan Young, CFO|
|Phil Corbett, Investor Relations Manager||+44 7713 687467 (UK)|
|Stifel Nicolaus Europe Limited (Nomad, Joint Broker)||+44 (0) 20 7710 7600 (UK)|
|Jefferies International Limited (Joint Broker)||+44 (0) 20 7029 8000 (UK)|
|Camarco (Public Relations Advisor)||+44 (0) 203 757 4980 (UK)|
About Jadestone Energy
Jadestone Energy plc 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, Malaysia, Indonesia, Vietnam and the Philippines.
The Company has a 100% operated working interest in the Stag oilfield and in 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 interests in four oil producing licences offshore Peninsula Malaysia; two operated and two non-operated positions. Further, the Company has a 100% operated working interest in two gas development blocks in Southwest Vietnam, and an operated 100% interest (assuming completion of the Hexindo stake acquisition as announced in November 2021) 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 a 69% operated working interest in the Maari Project, shallow water offshore New Zealand, and is working with the seller to obtain final New Zealand government 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 plc is listed on the AIM market of the London Stock Exchange. The Company is headquartered in Singapore. For further information on the Company please visit www.jadestone-energy.com.
This announcement may contain certain forward-looking statements with respect to the Company’s expectations and plans, strategy, management’s objectives, future performance, production, reserves, costs, revenues and other trend information. These statements are made by the Company in good faith based on the information available at the time of this announcement, but such statements should be treated with caution due to inherent risks and uncertainties. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this announcement should be construed as a profit forecast. Past share performance cannot be relied upon as a guide to future performance. The Company does not assume any obligation to publicly update the information, except as may be required pursuant to applicable laws.
The technical information contained in this announcement has been prepared in accordance with the June 2018 guidelines endorsed by the Society of Petroleum Engineers, World Petroleum Congress, American Association of Petroleum Geologists and Society of Petroleum Evaluation Engineers Petroleum Resource Management System.
Henning Hoeyland of Jadestone Energy plc, a Subsurface Manager with a Masters degree in Petroleum Engineering who is a member of the Society of Petroleum Engineers and who has been involved in the energy industry for more than 20 years, has read and approved the technical disclosure in this regulatory announcement.
This announcement does not contain inside information.
|2C resource||unrisked best estimate scenario of contingent resources|
|bscf||billion standard cubic feet|
|LPG||liquid petroleum gas|
|mm bbls||million barrels|
|mm boe||million barrels of oil equivalent|