Asia-Pacific oil and gas production company Jadestone Energy has satisfied all conditions for the proposed acquisition of the Montara oil project, located offshore Australia, from PTT Exploration and Production (PTTEP).
Completion of the takeover is expected to finalise within 10 days.
The deal was subject to the completion conditions, including the Australian regulatory approvals from the National Offshore Petroleum Titles Administrator (NOPTA) and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).
In July, PTTEP subsidiary PTTEP Australasia (Ashmore Cartier) signed an agreement to divest a 100% stake in the Montara field and its associated assets in the Commonwealth of Australia, to Jadestone Energy (Eagle) for $195m.
The divestment is a part of portfolio rationalisation to be aligned with PTTEP’s strategic direction.
There would be additional contingent consideration amounts of up to $160m, which is payable based on certain production, oil price and future development milestones being achieved.
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Jadestone Energy president and CEO Paul Blakeley said: “We are delighted to achieve satisfaction of all conditions precedent to this transformational deal for Jadestone, and look forward to completing the acquisition as planned.”
Once the transaction is completed, Jadestone will work jointly with PTTEP for production efficiency, cost reduction, and planning for additional investment into the asset, including an infill drilling programme that will begin next year.
Situated in the Timor Sea offshore Australia about 690km west of Darwin, the Montara field includes three separate fields including Montara, Skua and Swift/Swallow.
The Montara field had an average crude production of 7,694 barrel per day in the first half of 2018.