Oil and gas company Jadestone Energy plc has completed the acquisition of the remaining 10% interest in the Lemang production sharing contract onshore Indonesia. As a result, Jadestone’s interest (pre local government back-in rights) in the Lemang PSC has increased to 100%.
The 10% interest has been acquired through the execution of a Settlement and Transfer Agreement between Jadestone and PT Hexindo Gemilang Jaya (“Hexindo”).
In return for the transfer of Hexindo’s 10% stake, Jadestone has released Hexindo from unpaid amounts relating to Hexindo’s interest in the Lemang PSC and has paid a consideration of $500,000 (inclusive of transfer taxes, which Jadestone will remit directly to the Indonesian government).
The Lemang PSC contains the Akatara gas field development, which reached its final investment decision in June 2022.
The field has been independently estimated to contain 18.7 mmboe of gross 2C resource, and is being developed to displace coal in local gas-fired power generation, as well as condensate sales and LPG for local residential use.
Production remains on track for the first half of 2024, Jadestone said.
Once onstream, the Akatara development will broaden Jadestone’s production base, as well as increase the proportion of gas in the production mix, thereby reducing the Company’s greenhouse gas emissions intensity.
Paul Blakeley, Jadestone President and CEO, said: “We have acquired Hexindo’s interest for US$0.26/boe of 2C resource, compared to the original acquisition cost of US$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. Activity at the Akatara gas development project is progressing well and we remain on track to deliver this key organic growth project for Jadestone in the first half of 2024.”
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