Jadestone Energy Acquires 90% of Working Interest in Lemang Block

By Editorial Team 01/07/2020
Summary

Jadestone Energy Inc, an oil and gas producer operating in Asia Pacific, reached an agreement with Mandala Energy Lemang Pte Ltd to acquire 90 percent of the operated working interest in the Lemang Block in South Sumatra. The acquisition value reaches US$ 12 million, or around Rp 168 billion, and the company will use internal cash to fund it.

According to Jadestone Energy President and Chief Executive Officer (CEO) Paul Blakeley, this acquisition will increase the company's gas resources by 17.2 mmboe. "We are confident that we can develop gas in the Lemang Block at a cost of US$ 5.44 per boe by utilizing the existing facilities," he wrote on Jadestone Energy's website on Monday (6/29). Jade Energy also sees that the local gas price in the range of US$ 5-US$ 6 per mmbtu is attractive and can provide the desired return-on-investment. The acquisition is estimated to be completed in the first quarter of 2021.

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