Jadestone Energy plc (“Jadestone”), an independent oil and gas production company focused on the Asia Pacific region, is pleased to announce the satisfaction of all conditions required to complete its proposed acquisition of the Peninsular Malaysia assets (the “Assets”) of SapuraOMV Upstream Sdn. Bhd. (“SapuraOMV” or the “Seller”), including receipt of PETRONAS approval.
Jadestone and SapuraOMV will now proceed to complete the transaction, which will entail Jadestone paying the headline consideration of US$9 million, subject to agreed adjustments. At completion, Jadestone will also receive the economic benefits from the Assets accruing from the effective date of 1 January 2021. Under the terms of the acquisition agreement, completion is scheduled to occur on or about 30 July 2021.
Paul Blakeley, President and CEO commented:
“I am delighted to see that the conditions to complete this transaction are now satisfied, allowing us to conclude our acquisition of the Peninsular Malaysia assets in a very efficient way. Our ability to complete this transaction within just three months of announcing the deal is a testament to the strong spirit of collaboration with each of the Seller, PETRONAS Carigali and PETRONAS.
“I would like to acknowledge the clear and practical regulatory processes as well as the efficiency exhibited by PETRONAS during this approval process. “Jadestone is well prepared for working within the Malaysian regulatory regime, with a significant in-country presence and our operational leadership team already on the ground. We now look forward to rebuilding our operating presence in-country, deepening key relationships, and establishing a significant business, drawing on the deep pool of Malaysian national talent.”
Upon completion, the Assets will add immediate cash flow from around 6,000 barrels of oil equivalent per day of low operating cost production, on a net working interest basis, of which over 90% is oil. Adding the Assets to the Jadestone portfolio will increase the Group’s 2P reserves by 34%, adding 12.5 million barrels oil equivalent of net working interest 2P reserves as at 31 December 2020, based on Jadestone’s best estimate 2P reserves production profile.