The company will acquire interests in four licences, two of which will be operated by the company. These include a 70% operated interest in the PM329 PSC, containing the East Piatu field, and a 60% operated interest in the PM323 PSC, which contains the East Belumut, West Belumut and Chermingat fields. Jadestone estimates accessing 12.5 million boe of net working interest 2P reserves based on the company’s best estimate 2P reserves profile, which includes further development activities. All fields are in production, and have been developed by way of fixed wellhead and central processing platforms, which deliver oil to the onshore Terengganu Crude Oil Terminal.
In addition, the assets include a 50% non-operated working interest in the PM318 and AAKBNLP PSCs, which are operated by Petronas Carigali Sdn. Bhd.
The acquistion adds immediate cash flow from around 6000 boe/d of low operating cost production, on a net working interest basis, of which over 90% is oil. It also increases the company’s 2P reserves by 34%, adding 12.5 million boe of net working interest 2P reserves, based on the company’s best estimate 2P reserves production profile.
Paul Blakeley, President and CEO commented:“I am delighted to add these Peninsular Malaysia assets to the Jadestone portfolio. We have always viewed Malaysia as a highly prospective jurisdiction for upstream investment, and have been looking for the right entry opportunity. 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 in-country while we continue pursuing more materiality and growth through our acquisition and development led strategy.”
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