Jadestone Energy Inc. has announced, in line with the Company’s strategy, its withdrawal from the Bone production sharing contract offshore Indonesia, a further key step in releasing the company from non-strategic exploration assets.

Bone PSC is operated by Mitra Energy (Indonesia Bone) Limited, a wholly owned subsidiary of the Company, with a 60% working interest. Azimuth Indonesia Limited holds the remaining 40% working interest. Agreement has been reached to transfer the 60% working interest and operatorship to Azimuth, subject to government approval.

Jadestone Energy Executive Chairman, Paul Blakeley, said: “Our decision to withdraw from this PSC is in line with the Company’s new strategic focus on increasing value through production and development rather than long dated, frontier exploration. This withdrawal is at no cost to the company as we continue to re-shape the portfolio. The new management team’s efforts to achieve a balanced portfolio of production and development assets with additional growth from low risk exploration has already shown substantial results in our first nine months.”

Following the March closing of the acquisition of a 50% interest in the producing Ogan Komering PSC in Indonesia, Jadestone Energy is now aiming to complete the purchase of an interest in two appraised gas fields offshore Vietnam in the Nam Con Son basin and bring them on-stream in late 2019. The company also plans to further develop its existing assets in Vietnam’s Malay basin, Nam Du and U Minh gas fields.

Jadestone Energy’s recent portfolio activity includes:

The acquisition of the 100% operated interest in Stag oil field in Australia from Quadrant Energy and Santos, bringing the first production and cash flow in the company’s history

The acquisition of a 50% participating interest in the Ogan Komering PSC in Indonesia from Repsol, the first production in Southeast Asia in the company’s history

The acquisition of a 30% participating interest in Block 05-1b&c in Vietnam from Inpex, the company’s most mature near term development asset with FID expected in third-quarter 2017, and subject to the exercise of statutory pre-emption rights by Vietnam Oil and Gas Group (PVN)

An acceleration of efforts on applications for license extensions, sale or farm-downs where appropriate, and

Relinquishments that release the business from high-risk, non-carried exploration activity.

Source: www.worldoil.com