The Lemang PSC includes the undeveloped, but fully appraised Akatara gas field. The field has a best estimate gross undeveloped wet gas in place of approximately 115 bscf, which, at 90% interest equates to unrisked 2C resources of 55.2 bscf sales gas, 2.2 mm bbls of condensate, and 5.8 mm boe of liquid petroleum gas1.
Jadestone intends to pursue a low-cost development of the field, including re-use of existing wells and infrastructure, and tying in to a nearby gas export pipeline within 17km. The Company anticipates incremental production of approximately 5.3 mboe/d, based on management’s estimated plateau gas production rate of 18.8 mmscf/d gas (gross), plus associated condensate and LPG, with a duration of six years.
1 Based on an independent review of contingent resources by ERCE, an independent qualified reserves auditor, and prepared for the Company in June 2020 in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook (“COGEH”), assuming 90% interest. Based on 81% (assuming local government participation), total 2C Group resource is 15.5 mm boe. 2C resource volumes presented represent the sub-class Development Pending, as defined by COGEH, and are presented on an unrisked basis. The main contingencies are non-technical and include the finalisation of the gas sales agreement and project FID. ERCE estimates the chance of development at 90%.