Singapore-based Jadestone Energy has entered into a deal with OMV New Zealand to acquire an operated 69% stake in the Maari Project in shallow-water offshore New Zealand.

The deal is estimated to be worth $50m, subject to customary closing adjustments.

Located in permit PMP 38160, offshore Taranaki basin, in 100m water depth, nearly 80km southwest of New Zealand’s North Island, the Maari project is a mid-life producing asset.

The project comprises the Maari and Manaia oil fields, produced using a self-elevated jack-up wellhead platform, an FPSO, owned by the joint venture partners Horizon Oil (26%) and Cue Taranaki (5%).

According to Jadestone Energy, the fields hold 2P reserves of 13.9 million barrels of oil (mm bbls) of oil, and present production is about 4,000-4,500 bbls/d, both on a net 69% basis.

Production of Maari field began in 2009

Production of the oil field commenced in 2009 and achieved peak production of 16,400 barrels of oil per day (bbls/d) in 2010.

The company said with original oil in place of close to 300 mm bbls in the producing reservoirs and cumulative production of 38.3 mm bbls, the fields have achieved a recovery factor of 13% to date.

The fields, based on their current 2P reserves, are expected to produce until 2031, however, the Jadestone believes there is substantial potential for reserves upside not yet captured in the 2P reserves.

Jadestone Energy president and CEO Paul Blakeley said: “Adding the Maari Project to our growing portfolio of high-value assets in the Asia Pacific region demonstrates our ability to bolt on new assets and provides more than a decade of additional free cashflow, even in the 2P reserves only scenario, as supported by our external reserves audit.

“The Maari project adds both significant additional opportunity as well as diversity to our operations.  New Zealand is a natural strategic fit for Jadestone, where we see many shared values with regards to sustainable energy investment, through maximising recovery of existing resources and world-class expectations for health, safety and environmental stewardship.”

Jadestone Energy expects to complete the deal in the second half of 2020, and till then OMV New Zealand will carry on as operator of the assets.