Jadestone Energy, an oil and gas production company focused on the Asia Pacific region, has received all the necessary approvals - including one from Petronas - to complete the acquisition of SapuraOMV's Peninsular Malaysia assets.
Jadestone said in April it would acquire interests in four licenses, two of which will be operated by the company, for a total initial headline cash consideration of US$9 million.
The assets include a 70% operated interest in the PM329 PSC, containing the East Piatu field, and a 60% operated interest in the PM323 PSC, which contains the East Belumut, West Belumut and Chermingat fields.
All fields are in production, and have been developed by way of fixed wellhead and central processing platforms, which deliver oil to the onshore Terengganu Crude Oil Terminal ("TCOT").
Jadestone and SapuraOMV will now proceed to complete the transaction, which will entail Jadestone paying the S$9 million, subject to agreed adjustments. The completion is scheduled to occur on or about 30 July 2021.
Upon completion, Jadestone said, the assets will add immediate cash flow from around 6,000 barrels of oil equivalent per day of low operating cost production, on a net working interest basis, of which over 90% is oil.
Adding the assets to the Jadestone portfolio will increase the Group’s 2P reserves by 34%, adding 12.5 million barrels oil equivalent of net working interest 2P reserves as at 31 December 2020, based on Jadestone’s best estimate 2P reserves production profile.