Toronto Venture Exchange-listed oil group Jadestone Energy Inc is to raise US$95mln and list on AIM following a major acquisition in the Timor Sea, offshore Australia near Darwin.
The group has acquired the Montara oil project from PTT, Thailand’s state-owned oil company, for US$195mln in cash to add to its existing oilfields offshore Australia, and assets in Vietnam and the Philippines.
Montara consists of three fields that are currently producing 10.3 thousand barrels of oil (mbl) daily. The acquisition will triple Jadestone’s output to 13.9mbl/d and boost reserves to 45.3mln barrels (from 17.1mln) on a 2P basis.
A reserve-based lending facility of US$120mln will fund the deal alongside the placing.
Two existing institutional shareholders, directors and senior management will put up US$46mln of the share issue with pricing expected to be announced early August.
The acquisition is scheduled to complete in September or October.
Jadestone’s current assets are a 100% working interest in Stag, offshore Western Australia, a 100% operated working interest in three gas development blocks in Southwest Vietnam and a partnership with Total in the SC56 exploration block in the Philippines where it holds a 25% working interest.
Montara suffered a major oil spill in 2009, described as Australia’s worst, due to a wellhead blow-out.