Jadestone Energy  has executed an acquisition agreement with Mandala Energy, to acquire an operated 90% interest in the Lemang production sharing contract (“PSC”), onshore Indonesia, for a total initial headline cash consideration of US$12 million, to be funded from the Company’s cash resources, and certain subsequent contingent payments. 

Overview of the Lemang PSCThe Lemang PSC is located onshore Sumatra, Indonesia.  The block includes the Akatara gas field, which was previously developed as an oil producing asset, but has a best estimate gross undeveloped wet gas in place of approximately 115 bscf which, at 90% interest, equates to unrisked 2C resources of 55.2 bscf sales gas, 2.2 mm bbls of condensate, and 5.8 mm boe of liquid petroleum gas.

The asset has been substantially de-risked with 11 wells drilled into the structure, plus three years of oil production history, up until the field ceased production in December 2019, after reaching its economic limit for oil production.

The remaining 10% working interest in the PSC is held by PT Hexindo Gemilang Jaya and, as is customary in Indonesia, the local government has a back-in right under the PSC, for up to a 10% working interest, at the time of development sanction.  If exercised, this would result in an 81% interest, net to Jadestone.

KeyFacts Energy: Jadestone Energy Indonesia country profile