Jadestone Energy to acquire additional stake in CWLH oil fields for $9m

Jadestone Energy plc, an independent oil and gas production company, has announced a significant acquisition in the Asia-Pacific region. The company has executed a sale and purchase agreement to acquire a non-operated 16.67% working interest in the CWLH oil fields, offshore Western Australia, from Japan Australia LNG (MIMI) Pty Ltd. This US$9 million investment increases Jadestone’s interest in these fields to 33.33%.

Acquisition Details and Financial Aspects

The acquisition, which will raise Jadestone’s working interest in the CWLH fields from 16.67% to 33.33%, includes a total initial cash consideration of US$9 million and additional Abandonment Trust Payments. The total payments for the acquisition are projected to reach up to US$111 million, including future contributions to the CWLH Abandonment Trust Fund.

Jadestone Energy Expands Presence in Asia-Pacific with Strategic CWLH Fields Acquisition

Company’s Strategy and Production Potential

Paul Blakeley, President and CEO of Jadestone, highlighted the asset’s quality, long-life, and low decline rates. He noted the acquisition’s alignment with Jadestone’s growth strategy, emphasizing its cost-effectiveness and potential for increased influence over investment decisions. The company plans to fund the acquisition through available liquidity, including its reserves-based lending facility.

Operational and Financial Benefits

The CWLH fields have shown promising production rates, with an estimated 11.8 million barrels net to Jadestone, including 2P Reserves and 2C Resources. The acquisition is anticipated to be accretive to the company’s overall unit operating costs, with no incremental overhead. Jadestone also sees potential in extending the asset’s life beyond its initial design and adding incremental reserves through infill drilling.

Sustainability Commitment and Future Plans

Jadestone’s acquisition furthers its commitment to sustainable oil production, with low-sulphur and low-density oil from the CWLH fields. The company continues to focus on maximizing recovery and reducing emissions intensity in line with its sustainability principles.