Jadestone has an operated 90% interest in the Lemang PSC, which includes the undeveloped but fully appraised, Akatara gas field. On 24 November 2021, Jadestone announced the acquisition, subject to customary approvals, of the remaining 10% interest in the Lemang PSC. Completion is expected in Q4 2022. The local government has a back-in right of up to 10% (uncarried interest) from the time of development sanction. The Lemang PSC is located onshore Sumatra, close to major gas transportation infrastructure.
The main gas-bearing reservoirs in the Akatara field are the UTAF-B formations, which were deposited in shoreface to foreshore marine environments and are expected to be laterally continuous across the field. The range of porosity and permeability in the UTAF reservoirs is 17-28 % and ~120-9,610 mD respectively.
The Akatara gas field has been independently estimated to contain a 2C gross resource (pre local government back-in right) of 63.74 bscf of sales gas, 2.45 mm bbls of condensate and 5.64 mm boe of LPG, equating to a combined 18.7 mm boe of gross resource.1
On 1 December 2021, Jadestone announced that it had signed a gas sales agreement (“GSA”) for the Akatara field with PT Pelayanan Listrik Nasional Batam as buyer. The key terms of the Akatara GSA are detailed below:
The Company anticipates that the Akatara gas field will deliver a gross plateau production of approximately 6.1 kboe/d, based on an estimated gas production rate of 18.8 mmscf/d gas (gross), plus associated condensate and LPG, for a duration of seven years.
Jadestone intends to pursue a low-cost development of the field, including efficient re-use of existing wells and infrastructure, thereby minimising incremental impact on the local environment. Several further initiatives to reduce GHG emissions and enhance the environmental performance of the Akatara development are also being considered as part of the detailed engineering and development optimisation studies. Jadestone anticipates a gross development cost for the field prior to first gas of US$94 million.
1 Based on an independent review of contingent resources by ERCE, an independent qualified reserves auditor, dated 17 March 2021.