Mitra Energy Inc. is pleased to announce that Jadestone Energy (Australia) Pty Ltd ("Jadestone"), a wholly owned subsidiary of Mitra, has closed the acquisition of the Stag Oilfield.
On July 26, 2016, Mitra announced that Jadestone (formally named Mitra Energy (Australia) Pty Ltd), as buyer, and Mitra, as guarantor, had signed a definitive Sale & Purchase Agreement ("SPA") with Quadrant Northwest Pty Ltd ("Quadrant Energy") and Santos Offshore Pty Ltd ("Santos"), as sellers, for the acquisition of a 100% interest in the Stag Oilfield subject to the satisfaction of certain conditions precedent to closing. All conditions precedent have been satisfied and the Stag Oilfield acquisition closed on November 11, 2016.
The Stag Oilfield (which is in block WA-15-L) is located 60km offshore Western Australia in the Carnarvon Basin and in a water depth of approximately 47 metres. The production rate of the Stag Oilfield since the acquisition effective date of July 1, 2016 has averaged 3,468 barrels per day but is expected to increase on the completion of two workovers planned for this month as well as further increases with the infill wells which are planned for 2017.
At closing, a cash consideration of US$10 million was paid by Jadestone to Quadrant Energy and Santos. The payment was funded from the proceeds of the private placement completed on November 8th, 2016.
The Company also expects to receive a positive value adjustment in its favour upon closing of the Stag Acquisition, after allowing for unsold oil inventory on hand.
Executive Chairman, Paul Blakeley said, "This is a major milestone for New Mitra as we look to transform our business to become a significant oil & gas production and development company in Asia Pacific. Stag will bring production and cash flows to the Company for the first time in its history, as well as a number of exciting re-investment options to create further value for shareholders. This is therefore a very exciting moment for Mitra and a pivotal point in our transition. We are also making good progress, working closely with the Australian regulators, to meet the objective of transferring operatorship of the Stag oilfield from Quadrant Energy to Mitra as a key next step in building our operating credentials. It's appropriate to recognise the hard work of Mitra's dedicated and experienced team in all aspects of this achievement, and to the sellers, Quadrant Energy and Santos, who have been very professional and supportive and to whom we continue to work closely with, as we look to manage the final stage of transition from deal closing to operatorship transfer."
Following closing, Quadrant Energy will continue to perform its duties as operator of the Stag Oilfield on behalf of Jadestone under a transitional services agreement until the earlier of October 31, 2017 or when Australian regulatory approvals required for Jadestone to be operator of the Stag Oilfield have been obtained. These regulatory approvals are currently expected towards the end of Q1, 2017.
Source: Mitra Energy Inc.
Date: Nov 11, 2016