Jadestone Energy Increases Stake in CWLH Oil Fields Offshore Australia

Wednesday, February 14, 2024

Asia-pacific focused oil and gas company Jadestone Energy has completed the acquisition of a non-operated 16.67% working interest in the Cossack, Wanaea, Lambert, and Hermes (CWLH) oil fields development, offshore Western Australia, from Japan Australia LNG (MIMI).

With the latest acquisition, Jadestone’s non-operated working interest in the CWLH fields has increased to 33.33%, from the initial 16.67%, that was acquired from BP back in November 2022.

The acquired interest includes MIMI’s entire 16.67% working interest in the CWLH oil fields, subsea infrastructure, Okha FPSO, and full abandonment liabilities.

The acquisition cost to Jadestone for the fields located within four production licenses (WA-3-L, WA-9-L, WA-11-L and WA-16-L) in the North Carnarvon basin offshore north-west Australia, known as the North West Shelf Oil Project, was $9 million.

The CWLH fields continue to perform ahead of the company’s expectations, averaging c.13,700 bbls/d year to date in 2024, equivalent to c.2,300 bbls/d for the 16.67% interest being acquired or c.4,600 bbls/d to the company’s total 33.33% interest following completion.

Liftings of crude oil from the CWLH fields are implemented on an equity basis. Jadestone’s next cargo, attributable to the 16.67% interest just acquired, is estimated at c.650,000 barrels and has been sold at a small premium to Brent with the lifting scheduled for early March 2024.

Receipt of proceeds for this lifting are expected in early April 2024, according to Jadestone.

Two further liftings of similar size are expected within the next 12 months – one attributable to the original 16.67% interest (estimated timing in the fourth quarter of 2024) and the other attributable to the 16.67% just acquired (estimated timing in early 2025).

“CWLH is fast becoming a key asset for Jadestone. Our increasing ownership and influence will help to realize the full potential of the fields through a life extension beyond 2031 and additional drilling.

“Elsewhere, we continue to make good progress on commissioning activities at Akatara, with the project remaining on schedule for first gas in the second quarter of this year. The scheduled redetermination of our reserves-based lending facility is also progressing well,” said Paul Blakeley, President and CEO of Jadestone.

Categories: Mergers & Acquisitions Industry News Activity Production Australia/NZ Oil and Gas

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