UK listed Jadestone Energy has satisfied all the conditions necessary, including the approval of Petronas, to complete its acquisition of SapuraOMV’s Peninsular Malaysia assets in a deal worth up to $15 million that will increase the company’s total reserves by more than 30%.
Jadestone said today that it will now complete the deal announced early May with SapuraOMV. Jadestone will pay SapuraOMV $9 million initially with a further $6 million payable upon certain upside scenarios, which are tied to potential full year oil price outcomes in 2021 and 2022.
“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,” said Paul Blakeley, chief executive of Jadestone.
“I would like to acknowledge the clear and practical regulatory processes as well as the efficiency exhibited by PETRONAS during this approval process,” added Blakeley.
“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,” he said.
The deal establishes a new operating presence for the Asia Pacific-focused company in Malaysia and adds immediate cash flow from around 6,000 barrels of oil equivalent per day (boed) on a net working interest, 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.