Singapore-headquartered Jadestone Energy has completed its acquisition of the remaining 10% interest in the Lemang production sharing contract onshore Indonesia, releasing former partner Indonesia’s Hexindo Gemilang Jaya from its unpaid costs for the block.

In return for transferring its 10% stake in the block, Hexindo no longer has to pay Jadestone the amounts outstanding relating to its pro rata share of the costs and has stumped up half a million US dollars.

Part of the US$500,000 consideration was paid directly by Jadestone to Hexindo, with the balance going straight to the Indonesian government in respect of the transfer tax applicable to the transaction. Jadestone has not disclosed the split.

Jadestone’s chief executive Paul Blakeley said his company has “acquired Hexindo’s interest for 26 US cents per barrel of oil equivalent” of best estimate contingent resources, “compared to the original acquisition cost of 70 US cents per boe in 2020 — a very attractive bolt-on deal for us, particularly given the significant commercial and development progress since the initial acquisition was announced.”

The Lemang PSC on the island of Sumatra is home to the Akatara gas field for which Jadestone took the final investment decision in June. Akatara’s production will be used to displace coal in local power generation, while the field will also deliver condensate and liquid petroleum gas for domestic customers.

Start-up at Akatara, which contains a gross best estimate contingent resource of 18.7 million barrels of oil equivalent, is scheduled for the first half of 2024.

Jadestone currently has 100% operated equity in Lemang although local government agencies have back-in rights.

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