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Independent upstream firm Jadestone Energy plc has completed the acquisition of a non-operated 16.67 percent working interest in the Cossack, Wanaea, Lambert, and Hermes (CWLH) oil fields development offshore Western Australia, from Japan Australia LNG (MIMI) Pty Ltd.
As a result of the $9 million transaction, Jadestone has doubled its non-operated working interest in the CWLH fields to 33.33 percent. The agreed adjustments, reflecting the accumulated economic benefits of the CWLH assets from the effective date of July 2022 to completion, resulted in a net receipt of $6.3 million to Jadestone from the seller, according to a Wednesday news release from Jadestone.
As a result of the $9 million transaction, Jadestone has doubled its non-operated working interest in the CWLH fields to 33.33 percent.
Image by TebNad via iStock
The acquired interest includes the seller’s entire working interest in the CWLH oil fields, subsea infrastructure, the Okha floating production, storage, and offloading unit (FPSO), and full abandonment liabilities. Jadestone noted that the CWLH fields continue to perform ahead of its expectations, averaging around 13,700 barrels per day (bpd) year-to-date in 2024, equivalent to approximately 2,300 bpd for the 16.67 percent interest being acquired or 4,600 bpd for the company’s total 33.33 percent interest after completion of the acquisition.
The $6.3 million net receipt from the seller and $35.7 million from Jadestone have been paid into the CWLH Abandonment Trust Fund, in aggregate satisfying the initial $42 million abandonment funding and in line with the original acquisition announcement, according to the release. The second $23 million installment into the CWLH Abandonment Trust Fund is payable on National Offshore Petroleum Titles Authority (NOPTA) approval of the accession documents, which is expected in April. The final installment into the CWLH Abandonment Trust Fund is payable by December 31.
Jadestone’s next cargo, attributable to the 16.67 percent interest acquired, is estimated at around 650,000 barrels and has been sold at a small premium to Brent with the lifting scheduled for early March 2024. The receipt of proceeds for the lifting is expected in early April 2024, according to the release.
“We are pleased to increase our interest in the CWLH fields in line with the originally announced terms”, Jadestone President and CEO Paul Blakeley said. “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 installments.
“CWLH is fast becoming a key asset for Jadestone. Our increasing ownership and influence will help to realize the full potential of the fields through a life extension beyond 2031 and additional drilling”, Blakely continued.
“Elsewhere, we continue to make good progress on commissioning activities at Akatara, with the project rem
(Alliance News) - Jadestone Energy PLC on Wednesday said it expected the acquisition of a further CWLH 2 stake to complete in mid-February as oil production jumped last year.
The independent upstream energy company focused on the Asia-Pacific region said it had record production of 13,813 barrels of oil equivalent per day in 2023, up 20% from 11,487 in 2022.
Meanwhile, Jadestone's acquisition which will increase the company's non-operated working interest in the CWLH fields to 33.33% from 16.67% is set to complete in mid-February.
Chief Executive Officer Paul Blakeley said: "2024 is set to be a very important year of transition for Jadestone, with production expected to grow by around 55% year-on-year driven by first gas at Akatara, higher volumes from Malaysia and the completion of the CWLH 2 acquisition, all in turn adding significant diversification to our business."
Jadestone Energy shares were 0.7% higher at 26.42 pence each on Friday morning in London.
By Tom Budszus, Alliance News slot editor
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