Jadestone closes acquisition of Lemang PSC in Indonesia
Southeast Asia-focused Jadestone Energy has completed the acquisition of the remaining 10% interest in the Lemang production sharing contract onshore Indonesia, it said on November 23. Jadestone’s interest in the project has now increased to 100%.
The 10% interest has been acquired through the execution of a settlement and transfer agreement between Jadestone and Indonesia’s Hexindo Gemilang Jaya. In return for the transfer of Hexindo’s 10% stake, Jadestone has released Hexindo from unpaid amounts relating to the latter’s interest in the Lemang PSC and has paid a consideration of $500,000.
The Lemang PSC contains the Akatara gas field development, which reached a final investment decision in June 2022. The field has been independently estimated to contain 18.7mn barrels of oil equivalent of gross 2C resource.
The project will supply gas to local gas-fired power plants while the condensate and LPG will be sold for local residential use. Production remains on track for the first half of 2024, Jadestone said. The company late last year reached an agreement to sell gas from the Akatara gas field to local utility Pelayanan Listrik Nasional Batam, which has committed to take 20.5bn Btu/day of gas.
“We have acquired Hexindo’s interest for $0.26/boe of 2C resource, compared to the original acquisition cost of $0.70/boe in 2020 – a very attractive bolt-on deal for Jadestone, particularly given the significant commercial and development progress since the initial acquisition was announced,” CEO Paul Blakeley said.
Once onstream, the Akatara development will broaden Jadestone’s production base, as well as increase the proportion of gas in the production mix, the company said.