SINGAPORE: Jadestone Energy plc, an independent oil and gas manufacturing firm focused on the Asia-Pacific region, has acquired the remaining 10% curiosity within the Lemang manufacturing sharing contract onshore Indonesia. As a result, Jadestone’s curiosity (pre native authorities back-in rights) within the Lemang PSC has elevated to 100%.
The 10% curiosity has been acquired through the execution of a Settlement and Transfer Agreement between Jadestone and PT Hexindo Gemilang Jaya (“Hexindo”). In return for the switch of Hexindo’s 10% stake, Jadestone has launched Hexindo from unpaid quantities relating to Hexindo’s curiosity within the Lemang PSC and has paid a consideration of $500,000 (inclusive of switch taxes, which Jadestone will remit on to the Indonesian government).
The Lemang PSC contains the Akatara gas field development, which reached final funding decision in June 2022. The field has been independently estimated to contain 18.7 mmboe of gross 2C resource, and is being developed to displace coal in native gas-fired energy generation, in addition to condensate gross sales and LPG for native residential use. Production stays on track for the primary half of 2024. Once onstream, the Akatara development will broaden Jadestone’s manufacturing base, in addition to increase the proportion of gas within the manufacturing mix, thereby reducing the Company’s greenhouse gas emissions intensity.
Paul Blakeley, President and CEO commented: “We have acquired Hexindo’s curiosity for US$0.26/boe of 2C resource, in comparison with the unique acquisition cost of US$0.70/boe in 2020 – a really attractive bolt-on deal for Jadestone, particularly given the numerous commercial and development progress since the preliminary acquisition was announced. Activity on the Akatara gas development project is progressing well and we stay on track to ship this key natural growth project for Jadestone within the primary half of 2024.”