REG - Jadestone Energy PLC - Completion of CWLH Oil Fields Interest Acquisition

Jadestone EnergyAnnouncement

14/02/2024 07:00

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RNS Number : 0972D  Jadestone Energy PLC  14 February 2024

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
 Paul Blakeley, President and CEO                      +65 6324 0359 (Singapore)
 Bert-Jaap Dijkstra, CFO

 Phil Corbett, Investor Relations Manager              +44 (0) 7713 687467 (UK)
                                                       ir@jadestone-energy.com (mailto:ir@jadestone-energy.com)

 Stifel Nicolaus Europe Limited (Nomad, Joint Broker)  +44 (0) 20 7710 7600 (UK)
 Callum Stewart
 Jason Grossman
 Ashton Clanfield

 Peel Hunt LLP (Joint Broker)                          +44 (0) 20 7418 8900 (UK)
 Richard Crichton
 David McKeown

 Georgia Langoulant

 Camarco (Public Relations Advisor)                    +44 (0) 203 757 4980 (UK)
 Billy Clegg                                           jse@camarco.co.uk (mailto:jse@camarco.co.uk)
 Andrew Turner

 Elfie Kent

 

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 (http://www.jadestone-energy.com) .

 

This announcement does not contain inside information.

 1  National Offshore Petroleum Titles Administrator

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