Posted on August 1, 2022
Jadestone Energy plc (“Jadestone”) an independent oil and gas production company focused on the Asia-Pacific region, has executed a sale and purchase agreement with BP Developments Australia Pty Ltd (“BP”), to acquire the seller’s non-operated 16.67% working interest in the Cossack, Wanaea, Lambert, and Hermes oil fields development, offshore Western Australia, for a total initial headline cash consideration of US$20 million, according to the company’s release.
Jadestone is acquiring 10.4 mmbbls as at an effective date of 1 January 2020, comprising 1.5 mmbbls of production since the effective date, 5.1 mmbbls of 2P reserves and a further 3.9 mmbbls of 2C resource. Based on a consideration of US$24 million, this represents an acquisition cost of ~ US$2.30/bbl. The transaction includes the BP’s entire 16.67% working interest in the CWLH fields, subsea infrastructure, FPSO, and full abandonment liabilities estimated at US$82 million.
Oil production from the North West Shelf Oil Project is low-sulphur, low-density and commands a premium to Brent.
Jadestone will acquire the BP’s entire 16.67% working interest in the Cossack, Wanaea, Lambert and Hermes (“CWLH”) oil fields which are located within four production licences (WA-3-L, WA-9-L, WA-11-L and WA-16-L) in the North Carnarvon basin offshore north-west Australia, known as the North West Shelf Oil Project and operated by Woodside Energy Group Ltd.
The project comprises 13 subsea wells producing through the Ohka floating production, storage and offloading vessel (“FPSO”). The Okha FPSO was installed at the fields in 2011 and has 60,000 bbls/d of oil processing capacity, along with water handling and gas processing/reinjection facilities.
The Cossack, Wanaea and Hermes fields are currently in production and are estimated to contain aggregate gross 2P reserves of 30.3 mmbbls (5.1 mmbbls net) at 31 December 2021. Gross average production from the fields in 2021 was 12,461 bbls/d (2,077 bbls/d net) with Q1 2022 production averaging 14,178 bbls/d gross (2,363 bbls/d net).
Jadestone Energy plc is an independent oil and gas company focused on the Asia-Pacific region. It has a balanced, low risk, full cycle portfolio of development, production and exploration assets in Australia, Malaysia, Indonesia and Vietnam. Jadestone also has interests in four oil producing licences offshore Peninsular Malaysia; two operated and two non-operated positions. Further, the company has a 100% operated working interest in two gas development blocks in Southwest Vietnam, and an operated 100% interest (assuming completion of the Hexindo stake acquisition, as announced in November 2021) in the Lemang PSC, onshore Sumatra, Indonesia, which includes the Akatara gas field development.