Jadestone Energy PLC agreed to acquire Japan Australia LNG (MIMI) Pty Ltd.’s 16.67% working interest in Cossack, Wanaea, Lambert, and Hermes (CWLH) oil fields, offshore Western Australia.
The deal includes MIMI’s entire working interest in the fields, subsea infrastructure, Okha FPSO, and full abandonment liabilities.
Jadestone is acquiring 11.8 million bbl (net), comprised of 200,000 bbl of production since the deal’s effective date, 5.1 million bbl of 2P reserves, and an additional 6.5 million bbl of 2C resources (both as of Dec. 31, 2022).
Jadestone will add incremental reserves through infill drilling targeting unswept oil across all four of CWLH fields, extending the asset life beyond 2031 (the initial design life of the Okha FPSO).
CWLH fields contain low-sulphur and low-density oil and produced about 2,200 b/d in third-quarter 2023. The fields have averaged about 1,800 b/d year-to-date (net to Jadestone’s 16.67% interest). Production has exceeded 2,300 b/d (net) in recent months, the company said. Year-to-date production was impacted by infrastructure downtime earlier this year. Unspecified remediation plans to prevent similar occurrences are being implemented, the company said.
Jadestone will make payments of up to $111 million in connection with the acquisition, including cash consideration of $9 million, and up to $102 million into the CWLH Abandonment Trust Fund in three installments in 2024.
Upon the deal’s closing, expected in first-quarter 2024, Jadestone will hold 33.33% non-operated working interest in the fields.