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Jadestone Energy said it had executed a sale and purchase agreement with OMV New Zealand to acquire an operated 69% stake in the Maari project, located offshore New Zealand for a total of US$50m.
The Maari project included the Maari and Manaia oil fields, and was owned by the joint venture partners, Horizon Oil Limited (with 26% ownership) and Cue Taranaki (with 5% ownership).
The fields held 2P reserves of 13.9m barrels of oil, and current production was approximately 4,000-to-4,500 barrels per day, both on a net 69% basis.
The acquisition was expected to increase Jadestone's net production by approximately 30%, and 2P reserves by 33%, with an expected payback of less than 12 months from closing.
Completion of the acquisition would when all conditions were met, including acceptance of Jadestone as operator by the Maari joint venture partners, New Zealand Government approvals relating to title transfer and change of operatorship and other customary conditions on or before November 15, 2020.
Jadestone anticipated completing the transaction in the second half of 2020.