Jadestone Energy Acquires SapuraOMV's Interests in Peninsular Malaysia
TSX-V listed Jadestone Energy Plc has entered into a Sale and Purchase Agreement (SPA) with SapuraOMV Upstream Sdn Bhd to acquire its assets in Peninsular Malaysia, for an upfront cash consideration of US$9 million, plus certain contingent payments of up to US$6 million.
Under the terms of the agreement, Jadestone will acquire the assets through the purchase of the entire share capital of SapuraOMV Upstream (PM) Inc., an indirect subsidiary of SapuraOMV, for an initial headline cash consideration of US$9 million. In addition, a further consideration of up to US$6 million is payable, contingent upon full year oil price outcomes in 2021 and 2022.
The assets acquired consists of a 70% operated interest in the PM329 PSC (containing the East Piatu field), a 60% operated interest in the PM323 PSC, (containing the East Belumut, West Belumut, and Chermingat fields), and 50% non-operated working interests in the PM318 and AAKBNLP PSCs, which are operated by PETRONAS Carigali Sdn Bhd. The PSCs have combined total proved + probable reserves (2P Reserves) of approximately 12.5 million barrels of oil equivalent (MMboe) as of December 31st, 2020, and net production of approximately 6,000 barrels of oil equivalent per day (boe/d) during 2020.
“We see this acquisition as a high margin tuck-in, which meets our investment criteria, and sets the stage for us to establish operating credentials incountry while we continue pursuing more materiality and growth through our acquisition and development led strategy,” sad Jadestone’s President and CEO Paul Blakeley.
Headquartered in Singapore, Jadestone Energy is engaged in production, development, exploration, and appraisal activities in Australia, Vietnam, Indonesia, Malaysia, and the Philippines.
SapuraOMV operates as a 50:50 joint venture between Sapura Energy Bhd and OMV AG. The company holds interests in production and development assets in Malaysia, including producing fields in Peninsular Malaysia, two offshore gas blocks in Sarawa, and exploration blocks in New Zealand, Australia, and Mexico.
The transaction is subject to customary closing conditions, including the waiver of PETRONAS’ pre-emption rights and its approval, and is expected to close in the first half of 2021, with an effective date of January 1, 2021.