Jadestone Energy doubles stake in CWLH oil fields to boost Asia-Pacific presence

Jadestone Energy plc, an independent upstream company with a focus on the Asia-Pacific region, has successfully completed the acquisition of a 16.67% non-operated working interest in the Cossack, Wanaea, Lambert, and Hermes (CWLH) oil fields offshore Western Australia. This acquisition from Japan Australia LNG (MIMI) Pty Ltd increases Jadestone’s stake in the CWLH oil fields to 33.33%, doubling its previous interest and marking a significant expansion of its operational footprint.

The deal, valued at US$9 million as announced on November 14, 2023, has seen adjustments that resulted in Jadestone receiving a net amount of US$6.3 million from the seller. These adjustments account for the economic benefits accrued from the CWLH assets since the effective date of July 1, 2022, up to the completion of the acquisition. In addition to the net receipt, Jadestone and the seller have collectively contributed US$42 million into the CWLH Abandonment Trust Fund, covering the initial abandonment funding requirement. Further payments are scheduled, with a second installment of US$23 million expected upon NOPTA approval of accession documents in April 2024 and a final contribution due by December 31, 2024.

The acquired interest includes the seller’s entire stake in the CWLH fields, associated subsea infrastructure, the Okha FPSO (Floating Production Storage and Offloading unit), and full abandonment liabilities. The fields have been performing above Jadestone’s expectations, with average production levels reaching approximately 13,700 barrels per day (bbls/d) in 2024. This translates to about 4,600 bbls/d for Jadestone’s total 33.33% interest post-acquisition.

Jadestone’s strategy involves leveraging its increased ownership to enhance the fields’ productivity and extend their operational life beyond 2031. The company is also making progress on other projects, such as the Akatara gas field, which remains on track for first gas in the second quarter of the current year. With a focus on sustainable growth and value creation, Jadestone is poised to capitalize on both near-term momentum and long-term opportunities in the energy sector.

The acquisition by Jadestone Energy signifies a strategic move to bolster its portfolio in the offshore energy sector, particularly in the Asia-Pacific region. By doubling its interest in the CWLH oil fields, Jadestone not only enhances its production capabilities but also strengthens its position in the competitive energy market. The investment in abandonment funding reflects the company’s commitment to environmental responsibility and adherence to regulatory requirements, setting a precedent for industry best practices.

This transaction underscores the vibrancy of the oil and gas industry in Western Australia and highlights the potential for continued investment and development in the region. As companies like Jadestone Energy expand their operations and invest in the future of their assets, the sector is likely to see further growth and innovation, benefiting stakeholders and contributing to regional economic development.