TIDMJSE
RNS Number : 3536I
Jadestone Energy Inc.
11 December 2020
Jadestone Energy
Closing of the Lemang PSC Acquisition
December 11, 2020-Singapore: Jadestone Energy Inc. (AIM:JSE)
("Jadestone", the "Company", or the "Group"), an independent oil
and gas production company focused on the Asia Pacific region, is
pleased to announce that all conditions required to complete its
proposed acquisition of an operated 90% interest in the Lemang
production sharing contract (the "Lemang PSC"), onshore Indonesia,
are now satisfied.
This includes receipt of governmental approval of the assignment
of the interest and of Jadestone's appointment as operator, and
other consents required under the Lemang PSC joint operating
agreement.
Jadestone, as buyer, and Mandala Energy Lemang Pte Ltd (the
"Seller"), will now proceed to close the transaction, which will
become effective upon the Seller confirming receipt of the US$12
million purchase consideration. This is anticipated to occur within
the coming days.
Paul Blakeley, President and CEO commented:
"I am delighted to complete our acquisition of the Lemang PSC,
and to re-establish our operating presence in Indonesia. The asset
adds balance and diversity to our portfolio and creates an
opportunity to develop high-value gas for an energy-hungry region;
a region which is otherwise increasingly dependent on coal to meet
its growing energy needs.
"We will maintain a measured pace toward development spending,
but look forward to resuming investment into a jurisdiction and
basin we know well, through our team's prior involvement in the
South Sumatra region."
Through the secondment of Jadestone personnel into the Seller's
organisation, leading up to deal completion, the Company has
already begun work to instill the Jadestone operating philosophy
and efficiency-oriented culture. Key discussions are also underway
in respect of future gas sales arrangements, so as to commercialise
the Lemang PSC's 2C resources of 55.2 bscf sales gas, 2.2 mm bbls
of condensate, and 5.8 mm boe of liquid petroleum gas(1) , as
efficiently as possible.
1 Based on an independent review of contingent resources by
ERCE, an independent qualified reserves auditor, and prepared for
the Company in June 2020 in accordance with National Instrument
51-101 - Standards of Disclosure for Oil and Gas Activities and the
Canadian Oil and Gas Evaluation Handbook ("COGEH"), assuming 90%
interest. 2C resource volumes presented represent the sub-class
Development Pending, as defined by COGEH, and are presented on an
unrisked basis. The main contingencies are non-technical and
include the finalisation of the gas sales agreement and project
FID. ERCE estimates the chance of development at 90%.
____________________________
For further information, please contact:
Jadestone Energy Inc. +65 6324 0359 (Singapore)
Paul Blakeley, President and CEO +44 7392 940 495 (UK)
Dan Young, CFO +1 403 975 6752 (Canada)
Robin Martin, Investor Relations Manager ir@jadestone-energy.com
Stifel Nicolaus Europe Limited (Nomad, +44 (0) 20 7710 7600 (UK)
J oint Broker)
Callum Stewart
Simon Mensley
Ashton Clanfield
BMO Capital Markets Limited (Joint Broker) +44 (0) 20 7236 1010 (UK)
Thomas Rider
Jeremy Low
Thomas Hughes
Camarco (Public Relations Advisor) +44 (0) 203 757 4980 (UK)
Georgia Edmonds j se @camarco.co.uk
Billy Clegg
James Crothers
About Jadestone Energy
Jadestone Energy Inc. 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, Indonesia and Vietnam.
The Company has a 100% operated working interest in the Stag
oilfield and the Montara project, both offshore Australia. Both the
Stag and Montara assets include oil producing fields, with further
development and exploration potential. The Company also has a 100%
operated working interest in two gas development blocks in
Southwest Vietnam, and an operated 90% interest in the Lemang PSC,
onshore Sumatra, Indonesia, which includes the Akatara gas
field.
In addition, the Company has executed a sale and purchase
agreement to acquire an operated 69% interest in the Maari Project,
shallow water offshore New Zealand, and anticipates completing the
transaction in H1 2021, upon receipt of customary approvals.
Led by an experienced management team with a track record of
delivery, who were core to the successful growth of Talisman's
business in Asia, the Company is pursuing an acquisition strategy
focused on growth and creating value through identifying,
acquiring, developing and operating assets in the Asia Pacific
region.
Jadestone Energy Inc. is listed on the AIM market of the London
Stock Exchange. The Company is headquartered in Singapore. For
further information on Jadestone please visit
www.jadestone-energy.com.
Cautionary statements
Certain statements in this press release are forward-looking
statements and information (collectively "forward- looking
statements"), within the meaning of the applicable securities
legislation. The forward-looking statements contained in this press
release are forward-looking and not historical facts.
Some of the forward-looking statements may be identified by
statements that express, or involve discussions as to expectations,
beliefs, plans, objectives, assumptions or future events or
performance (often, but not always, through the use of phrases such
as "will likely result", "are expected to", "will continue", "is
anticipated", "is targeting", "estimated", "intend", "plan",
"guidance", "objective", "projection", "aim", "goals", "target",
"schedules", and "outlook"). In particular, forward-looking
statements in this press release include, but are not limited to,
statements regarding the timing for completion of the Lemang
acquisition and the timing to conclude a gas sales agreement for
the Lemang gas development.
Because actual results or outcomes could differ materially from
those expressed in any forward-looking statements, investors should
not place undue reliance on any such forward-looking statements. By
their nature, forward-looking statements involve numerous
assumptions, inherent risks and uncertainties, both general and
specific, which contribute to the possibility that the predicted
outcomes will not occur. Some of these risks, uncertainties and
other factors are similar to those faced by other oil and gas
companies and some are unique to Jadestone. Whilst the Company
believes the expectations reflected herein to be reasonable in
light of the information available to them at this time, the actual
outcome may be materially different owing to factors beyond the
Company's control or within the Company's control where, for
example, the Company decides on a change of plan or strategy.
Accordingly, no reliance may be placed on the figures contained in
such forward- looking statements. The forward-looking information
contained in this news release speaks only as of the date hereof.
The Company does not assume any obligation to publicly update the
information, except as may be required pursuant to applicable
laws.
The oil, natural gas and natural gas liquids information in this
announcement has been prepared in accordance with National
Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities and the Canadian Oil and Gas Evaluation Handbook (the
"COGE Handbook").
A barrel of oil equivalent ("boe") is determined by converting a
volume of natural gas to barrels using the ratios of six thousand
cubic feet ("Mcf") to one barrel. Boes may be misleading,
particularly if used in isolation. A boe conversion ratio of 6
Mcf:1 boe is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Given that the value ratio based
on the current price of oil as compared to natural gas is
significantly different from the energy equivalency of 6:1,
utilising a conversion on a 6:1 basis may be misleading as an
indication of value.
The technical information contained in this Presentation has
been prepared in accordance with the March 2007 guidelines endorsed
by the Society of Petroleum Engineers, World Petroleum Congress,
American Association of Petroleum Geologists and Society of
Petroleum Evaluation Engineers Petroleum Resource Management
System.
Henning Hoeyland of Jadestone Energy Inc., Group Subsurface
Manager with a Masters degree in Petroleum Engineering who is a
member of the Society of Petroleum Engineers and who has been
involved in the energy industry for more than 19 years, has read
and approved the technical disclosure in this regulatory
announcement.
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Glossary
2C resources unrisked best estimate scenario of contingent resources
bscf billion standard cubic feet
mm bbls million barrels of condensate
mm boe million barrels of oil equivalent
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