Completion of CWLH Oil Fields
Interest Acquisition
14 February 2024 - Singapore: Jadestone Energy plc
("Jadestone", the "Group" or the "Company"), an independent
upstream company focused on the Asia-Pacific region, is pleased to
announce the completion of the acquisition of a non-operated 16.67%
working interest in the Cossack, Wanaea, Lambert, and Hermes
("CWLH") oil fields development, offshore Western Australia, from
Japan Australia LNG (MIMI) Pty Ltd (the "Seller"). As a result, the
Company's non-operated working interest in the CWLH fields has
increased to 33.33% (from 16.67%).
The headline acquisition cost to
Jadestone was US$9 million, as originally announced on 14 November
2023. Agreed adjustments, reflecting the accumulated economic
benefits of the CWLH assets for the period from the effective date
of 1 July 2022 to completion, resulted in a net receipt to
Jadestone from the Seller of US$6.3 million.
The US$6.3 million net receipt from
the Seller and US$35.7 million from Jadestone have been paid into
the CWLH Abandonment Trust Fund, in aggregate satisfying the
initial US$42 million abandonment funding and in line with the
original acquisition announcement. The second US$23 million
instalment into the CWLH Abandonment Trust Fund is payable on
NOPTA[1] approval of the accession
documents, which is expected in April 2024. The final instalment
into the CWLH Abandonment Trust Fund is payable by 31 December
2024.
The acquired interest includes the
Seller's entire 16.67% working interest in the CWLH oil fields,
subsea infrastructure, Okha FPSO, and full abandonment liabilities.
The CWLH fields continue to perform ahead of the Company's
expectations, averaging c.13,700 bbls/d year to date in 2024,
equivalent to c.2,300 bbls/d for the 16.67% interest being acquired
or c.4,600 bbls/d to the Company's total 33.33% interest following
completion.
Liftings of crude oil from the CWLH
fields are implemented on an equity basis. Jadestone's next cargo,
attributable to the 16.67% interest just acquired, is estimated at
c.650,000 barrels and has been sold at a small premium to Brent
with the lifting scheduled for early March 2024. Receipt of
proceeds for this lifting are expected in early April 2024. Two
further liftings of similar size are expected within the next 12
months - one attributable to the original 16.67% interest
(estimated timing in the fourth quarter of 2024) and the other
attributable to the 16.67% just acquired (estimated timing in early
2025).
Paul Blakeley, President and CEO commented:
"We are pleased to increase our interest in the CWLH fields in
line with the originally announced terms. The asset continues to
outperform our expectations, with the imminent early March 2024
lifting proceeds expected to substantially offset the net cost of
the first two abandonment funding instalments.
CWLH is fast becoming a key asset for Jadestone. Our
increasing ownership and influence will help to realise the full
potential of the fields through a life extension beyond 2031 and
additional drilling.
Elsewhere, we continue to make good progress on commissioning
activities at Akatara, with the project remaining on schedule for
first gas in the second quarter of this year. The scheduled
redetermination of our reserves-based lending facility is also
progressing well. The near-term momentum and growth in our business
is complemented by exciting longer-term opportunities, providing
encouragement for the future as we look to generate significant
value for our shareholders.
-ends-
For further information, please
contact:
Jadestone Energy plc
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Paul Blakeley, President and
CEO
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+65 6324 0359 (Singapore)
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Bert-Jaap Dijkstra, CFO
Phil Corbett, Investor Relations
Manager
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+44 (0) 7713 687467 (UK)
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ir@jadestone-energy.com
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Stifel Nicolaus Europe Limited (Nomad, Joint
Broker)
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+44 (0) 20 7710 7600 (UK)
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Callum Stewart
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Jason Grossman
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Ashton Clanfield
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Peel
Hunt LLP (Joint Broker)
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+44 (0) 20 7418 8900 (UK)
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Richard Crichton
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David McKeown
Georgia Langoulant
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Camarco (Public Relations Advisor)
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+44 (0) 203 757 4980 (UK)
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Billy Clegg
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jse@camarco.co.uk
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Andrew Turner
Elfie Kent
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About Jadestone Energy
Jadestone Energy plc is an
independent oil and gas company focused on the Asia-Pacific
region. It has a balanced and increasingly diversified
portfolio of production and development assets in Australia,
Malaysia, Indonesia, Thailand and Vietnam, all stable jurisdictions
with a positive upstream investment climate.
Led by an experienced management
team with a track record of delivery, who were core to the
successful growth of Talisman Energy's business in Asia-Pacific,
the Company is pursuing a strategy to grow and diversify the
Company's production base both organically, through developments
such at Akatara in Indonesia and Nam Du/U Minh in Vietnam, as well
as through acquisitions that fit within Jadestone's financial
framework and play to the Company's strengths in managing maturing
oil assets. Jadestone delivers value in its acquisition strategy by
enhancing returns through operating efficiencies, cost reductions
and increased production through further investment.
Jadestone is a responsible operator
and well positioned for the energy transition through its
increasing gas production, by maximising recovery from existing
brownfield developments and through its Net Zero pledge on Scope 1
& 2 GHG emissions from operated assets by 2040. This strategy
is aligned with the IEA Net Zero by 2050 scenario, which stresses
the necessity of continued investment in existing upstream assets
to avoid an energy crisis and meet demand for oil and gas through
the energy transition.
Jadestone Energy plc (LEI:
21380076GWJ8XDYKVQ37) is listed on the AIM market of the London
Stock Exchange (AIM: JSE). The Company is headquartered in
Singapore. For further information on the Company please
visit www.jadestone-energy.com.
This announcement does not contain inside
information.