Jadestone, as buyer, and Mandala Energy Lemang Pte Ltd (the “Seller”), will now proceed to close the transaction

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Jadestone Energy closes Lemang PSC acquisition. (Credit: John R Perry from Pixabay)

Jadestone Energy Inc. (AIM:JSE) (“Jadestone”, the “Company”, or the “Group”), an independent oil and gas production company focused on the Asia Pacific region, is pleased to announce that all conditions required to complete its proposed acquisition of an operated 90% interest in the Lemang production sharing contract (the “Lemang PSC”), onshore Indonesia, are now satisfied.

This includes receipt of governmental approval of the assignment of the interest and of Jadestone’s appointment as operator, and other consents required under the Lemang PSC joint operating agreement.

Jadestone, as buyer, and Mandala Energy Lemang Pte Ltd (the “Seller”), will now proceed to close the transaction, which will become effective upon the Seller confirming receipt of the US$12 million purchase consideration.  This is anticipated to occur within the coming days.

Paul Blakeley, President and CEO commented:

“I am delighted to complete our acquisition of the Lemang PSC, and to re-establish our operating presence in Indonesia.   The asset adds balance and diversity to our portfolio and creates an opportunity to develop high-value gas for an energy-hungry region; a region which is otherwise increasingly dependent on coal to meet its growing energy needs.

“We will maintain a measured pace toward development spending, but look forward to resuming investment into a jurisdiction and basin we know well, through our team’s prior involvement in the South Sumatra region.”

Through the secondment of Jadestone personnel into the Seller’s organisation, leading up to deal completion, the Company has already begun work to instill the Jadestone operating philosophy and efficiency-oriented culture.  Key discussions are also underway in respect of future gas sales arrangements, so as to commercialise the Lemang PSC’s 2C resources of 55.2 bscf sales gas, 2.2 mm bbls of condensate, and 5.8 mm boe of liquid petroleum gas1, as efficiently as possible.

Source: Company Press Release