Asia-Pacific Oil and Gas Company jade stone energy announced the completion of the acquisition of a 16.67% unoperated working interest in the development of the Cossack, Wanaea, Lambert and Hermes (CWLH) oilfields, offshore Western Australia.

The AIM-listed company said the acquisition, from BP Developments Australia, follows the satisfaction of all conditions under the terms of the sale and purchase agreement signed on July 28.

He said his overall acquisition cost was $20 million, as originally announced.

Including agreed-upon adjustments, which resulted from the cumulative economic benefits of CWLH’s assets for the period from the January 1, 2020 effective date to completion, Jadestone said it would receive $5.75 million in cash from the seller.

Consistent with the initial acquisition announcement, Jadestone said it had paid an initial $41 million to the North West Shelf Oil Project Abandonment Trust.

The board said the acquired interest includes the seller’s entire 16.67% working interest in the CWLH oilfields, subsea infrastructure, Okha FPSO and total abandonment liabilities estimated at $82 million, and represented 10.4 million barrels of acquired reserves and resources as of the Effective Date. from January 1, 2020.

According to the operator, production from the CWLH fields averaged 14,196 barrels of oil per day for the three months to September, or 2,366 barrels per day net for the acquired Jadestone stake.

Crude oil liftings from the CWLH fields are being implemented on an equity basis, with the next lifting attributable to Jadestone’s acquired interest of approximately 650,000 barrels scheduled for mid-November, with cash receipt by Jadestone being scheduled for December.

Jadestone said it will now apply to the National Offshore Oil Titles Administrator to approve the trading and registration of the oil titles relating to the acquired interest.

“We are very pleased to have had access to this important asset, especially as we see very significant benefits from new investments in the future,” said Chairman and CEO Paul Blakeley.

“Our transaction benefits from the effective date, which is almost two years ago, and from the strengthening of the price of oil during the same period.

“We will also see a positive impact from the upcoming equity round, which is expected to generate significant cash proceeds for Jadestone before the end of 2022.”

Blakeley said the transaction was “typical” of the natural transfer of interests in maturing assets from large IOCs, where materiality thresholds were not competing within their portfolios, to smaller companies willing to invest for additional reserves and production.

“We strongly believe that the CWLH fields will be a key asset and strategic stepping stone for Jadestone in the future.

“Over time, we hope to work with project operator North West Shelf Oil and existing joint venture partners to add value by sharing our expertise in managing mature oil assets.”

At 12:22 GMT, shares of Jadestone Energy were up 5.46% to 71.5p.

Reporting by Josh White for