SINGAPORE – Jadestone Energy Inc. has executed a sale and purchase agreement with OMV New Zealand Ltd. to acquire an operated 69% interest in the shallow-water Maari project off New Zealand.
The agreed purchase price is $50 million, subject to customary closing adjustments. The effective date of the transaction is Jan. 1, 2019, and the closing of the transaction is subject to joint venture and New Zealand government approvals.
Jadestone anticipates completing the transaction in H2 2020, and until then OMV New Zealand will continue as operator of the assets.
The Maari project is a mid-life producing asset located in permit PMP 38160, in the offshore Taranaki basin, in 100 m (328 ft) water depth, about 80 km (50 mi) southwest of New Zealand’s North Island. The project includes the Maari and Manaia oil fields, produced via a self-elevated jack-up wellhead platform, an FPSO, owned by the joint venture partners Horizon Oil Ltd. (26%) and Cue Taranaki Pty Ltd. (5%).
The fields hold 2P reserves of 13.9 MMbbl of oil, and current production is about 4,000-4,500 b/d, both on a net 69% basis.
Production began in 2009 and achieved peak production of 16,400 b/d in 2010.
According to Jadestone, with original oil in place of close to 300 MMbbl in the producing reservoirs and cumulative production of 38.3 MMbbl, the fields have achieved a recovery factor of 13% to date.
The fields, based on their current 2P reserves, are scheduled to produce until 2031, however the Jadestone management team believes there is substantial potential for reserves upside not yet captured in the 2P reserves.