Jadestone Energy, a Singapore based independent oil firm has announced that it has acquired the Montara project, off the Australian coast. As per sources, the acquisition has been completed at a valuation of GBP 147.1million.
For the uninitiated, the Montara project is located around 430 miles west of Darwin and is known to cover three fields, namely Montara, Skua, and Swallow/Swift. The Montara operations reportedly involve oil extraction using subsea production wells.
Incidentally, Montara, prior to its acquisition by Jadestone Energy used to produce 10,000 barrels of oil each day. However, the firm reported that after the acquisition is completed the production of oil will be tripled to approximately 14,000 barrels per day, eventually increasing its current reserves.
As per an official statement, Jadestone will obtain the financing for the deal through proceeds of a GBP 90 million lending facility and a GBP 71 million equity offering provided by Societe Generale and the Commonwealth Bank of Australia respectively. The deal was signed in partnership with the subsidiaries of PTTEP (PTT Exploration and Production Company).
The President and Chief Executive of Jadestone, Paul Blakeley has apparently stated that this acquisition will strengthen the firm’s place in Asia Pacific and will complement its current low risk portfolio of operated production assets in the region. He went on to add that Asia Pacific is an opportunity-rich region and with the firm’s strict screening criteria, Montara’s acquisition is indicative of the ideal chance that Jadestone has obtained, to showcase its commercial and technical capabilities and provide maximum value and returns to its shareholders.
Blakeley also revealed that Jadestone has also unearthed a number of opportunities to add value to its current assets via better production, reduced operation costs, and infill drilling. The company’s highest priority at this point is to deliver a potent plan that would ensure a smooth transfer and safe field operations.