Jadestone Energy has satisfied all conditions precedent to its proposed acquisition of the Montara oil project, offshore Australia, from Thailand’s PTTEP.
The independent oil and gas producer announced on Friday that the transaction was expected to complete within 10 days.
PTTEP announced its decision to divest its 100% stake in the Montara field to align with the company’s business strategy aimed to focus on the operations and projects in strategic locations back in mid-July. The company subsequently sold Montara to Jadestone for US$190 million with PTTEP negotiating additional contingent considerations of up to US$160 million, depending on certain production, oil price and future development milestones being achieved.
Paul Blakeley, President and CEO commented “We are delighted to achieve satisfaction of all conditions precedent to this transformational deal for Jadestone, and look forward to completing the acquisition as planned.”
Upon completion, Jadestone said it will work jointly with PTTEP under the terms of an operator and transitional services agreement to begin implementing Jadestone’s operating philosophy, focused on “production efficiency, cost reduction, and planning for further investment into the asset, including an infill drilling program starting in 2019.”
The Montara field, located in the Timor Sea approximately 690 km west of Darwin, comprises the Montara, Skua and Swift/Swallow fields, produced through a centralized FPSO, the Montara Venture, which will be transferred to Jadestone.
The average production volume from the field in the first half of this year was about 7,694 barrels per day.
The average production volume from Montara in the first half of this year was about 7,694 barrels per day.