Jadestone Energy PLC Jadestone expects to implement reservoir optimization and production enhancement activities across two licenses on which it gained operatorship through an agreement to acquire Malaysian interests from SapuraOMV Upstream Sdn. Bhd.
For $9 million total initial cash, Jadestone will acquire interests in four licenses, two of which it will operate. Assets include 70% operated interest in PM329, containing East Piatu field, and 60% operated interest in PM323, which contains East Belumut, West Belumut, and Chermingat fields. In addition, Jadestone will acquire 50% non-operated working interest in Petronas-operated PM318 and AAKBNLP.
East Piatu is in Block 329, about 260 km northeast of Terengganu in 61 m of water. East Belumu, West Belumut, and Chermingat are in PM 323 about 257 miles offshore Peninsular Malaysia in 65-73 m of water. 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. The purchase will add immediate cash flow to Jadestone from around 6,000 boe/d on a net working interest basis, of which over 90% is oil.
Gas re-injection will be part of reservoir optimization, while production enhancement will initially focus on restoring idle wells to production. Further incremental development activities will include infill drilling in East Belumut field. East Belumut has medium heavy oil, and the main driver to increase recovery factors is through tightening of the well pattern. Targeted opportunities in East Piatu and West Belumut will be evaluated in parallel with East Belumut.
Jadestone estimates a 34% increase in 2P reserves, accessing 12.5 MMboe net working interest 2P reserves based on the company’s best estimate reserves profile, which includes further development activities.
