Jadestone Energy Provides Vietnam Acquisition Update
February 26, 2018 – Singapore: Jadestone Energy Inc. (TSXV:JSE) (“Jadestone” or the “Company”), reports today that it has received from Teikoku Oil (Con Son) Co., Ltd, a wholly-owned subsidiary of Inpex Corporation (“Inpex”), a notice of termination in relation to the Sale & Purchase Agreement (“SPA”) originally announced on August 9, 2016 and pursuant to which, Inpex has agreed to sell a 30% working interest in the Blocks 05-1b and 05-1c (“Block 05-1b&c”) Production Sharing Contract to Jadestone.
This notice comes just days after Petrovietnam notified Inpex that Petrovietnam has waived its statutory pre-emption right held under Vietnamese law, and requested the parties to submit the requisite assignment documentation to complete the legal formalities in respect of this transaction.
The Company notes that, after passage of the long stop date under the SPA, Inpex requested the Company not to terminate the SPA. With the long-awaited waiver of Petrovietnam’s statutory pre-emption right now secured, Inpex has failed to comply with its obligations to satisfy the remaining conditions and purports to terminate the SPA.
Jadestone does not accept Inpex’s alleged termination. Jadestone views the obligations of both parties under the SPA as continuing despite Inpex’s material and repeated breaches of obligations relating to satisfaction of conditions to completion.
“We are disappointed by this turn of events,” commented Paul Blakeley, Jadestone’s Chief Executive Officer, “the SPA with Inpex was negotiated in good faith, and we see no justification for terminating the deal just as Petrovietnam has provided a clear way forward. Nevertheless, as we look at the opportunities emerging before us today, we’re confident that we can acquire and close similar value accretive acquisitions like Block 05-1b&c, within the Asia Pacific region.”
The Company maintains its rights under the SPA and is assessing its options, including remedies available through legal action.
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About Jadestone Energy Inc.
Jadestone Energy Inc. is a TSX-V listed oil and gas company headquartered in Singapore. The Company is currently engaged in production, development and exploration and appraisal activities in Australia, Indonesia, Vietnam and the Philippines. Following a recent strategic review, the Company is focusing on acquiring assets with production in the near term, and where significant follow-on reinvestment opportunities exist to enhance value, as well as undeveloped discoveries which may be rapidly brought to production.
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