30th Jun 2020 07:00
Jadestone Energy Inc - Asia Pacific-focused oil and gas production company - Executes acquisition agreement to acquire an operated 90% interest in the Lemang production sharing contract, located in onshore Sumatra, Indonesia. Jadestone will make an initial USD12 million payment to acquire the Lemang PSC interest from Mandala Energy Lemang Pte Ltd. Jadestone would also pay out another USD5 million to Mandala Energy upon first gas and make additional contingent payments to to a USD26.7 million maximum. The Lemang PSC includes the Akatara gas field, which has best estimate gross undeveloped wet gas in place of around 115 billion standard cubic feet. At 90% interest, this would give Jadestones unrisked 2C resources of 55.2 bscf sales gas, 2.2 million barrels of condensate, and 5.8 million barrels of oil equivalent of liquid petroleum gas. The other 10% interest in the Lemang PSC is owned by PT Hexindo Gemilang Jaya. The local government has a back-in rights for a working interest of as much as 10% when sanctioning development, which is customary in Indonesia and could result in Jadestone's interest falling to 81%.
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By Anna Farley; [email protected]
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