Jadestone acquisition of SapuraOMV’s PM assets expected to be completed in 2H21

TheEdge Fri, Jun 11, 2021 11:38am - 1 week ago


KUALA LUMPUR (June 11): SapuraOMV Upstream (Malaysia) Inc is expected to complete its asset transaction with London Stock Exchange AIM market-listed Jadestone Energy plc for US$9 million (RM36.95 million) in the second half of this year (2H21).

SapuraOMV is a strategic partnership between Sapura Energy Bhd and OMV Exploration & Production GmbH (OMV), a subsidiary of Austria’s OMV Aktiengesellschaft. 

In a statement on Wednesday, Jadestone said the transaction consisting of the acquisition of four SapuraOMV’s producing assets — PM323, PM329, PM318 and AAKBNLP production sharing contracts (PM assets) — is to be completed following the waiver of pre-emption rights and receipt of Petronas Nasional Bhd's (Petronas) approval.

The PM assets’ average year-to-date (YTD) net entitlement production is around 6,000 barrels oil equivalent per day. 

The execution of the sales and purchase agreement (SPA) to acquire the assets was announced on April 30, 2021, and comes with contingent payment of up to US$6 million dependent on certain oil price criteria being met.

Jadestone added that it also expects to complete its acquisition of OMV New Zealand Ltd’s interest in the Maari field off New Zealand in 2H21.

Following these announcements, the company said it intends to issue updated production guidance, accounting for revised expectations of timing to close the Maari asset acquisition and the positive impact of the SapuraOMV asset acquisition.

At 10.41am, Sapura Energy's share price was half a sen or 3.85% higher at 13.5 sen per share, giving it a market capitalisation of RM2.08 billion.






Related Stocks

SAPNRG 0.140

Comments

Login to comment.