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Jadestone Energy PLC on Thursday announced it is buying stakes in gas fields onshore Thailand.
The Asia Pacific-focused oil and gas company is buying a 9.5% stake in the producing Sinphuhorm gas field and a 27% stake in Dong Mun from Salamander Energy SE Asia Ltd, an affiliate of PT Medco Energi Internasional Tb.
Jadestone said, with the acquisition, it is buying 4.6 million barrels of oil equivalent per day of 2P reserves at an effective date of January 1, 2022. It estimates the acquisition cost at $7.1 per barrel of oil equivalent.
2P reserves are the total of proven and probable reserves.
Jadestone expects payback on the acquisition, with a headline payment of $32.5 million in around three and a half years.
‘The asset is highly predictable and reliable, running at close to 100% uptime in 2022 and with a high take-or-pay to a regional power station for electricity generation,’ said Jadestone President & Chief Executive Officer Paul Blakeley.
The company expects the acquisition to close in February.
Jadestone Energy shares were 3.3% higher at 82.00 pence each in London on Thursday afternoon.
By Tom Budszus, Alliance News reporter
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