Mitra Energy Inc has announced that its wholly owned subsidiary Jadestone Energy (Australia) Pty Ltd has closed the acquisition of Stag Oilfield in offshore Western Australia.
On 26 July, Jadestone as buyer with Mitra as guarantor signed a definitive sale and purchase agreement with Quadrant Northwest Pty Ltd and Santos Offshore Pty Ltd to acquire complete interest in the Stag Oilfield.
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By GlobalDataAll customary conditions of the deal were fulfilled and the acquisition closed on 11 November.
With a water depth of 47m Stag Oilfield in block WA-15-L is located 60km offshore Western Australia in the Carnarvon Basin.
The Stag Oilfield has produced an average of 3,468bpd since the acquisition's effective date of 1 July.
Production is expected to increase with two workovers planned for this month. Furthermore, the company plans to dig infill wells in 2017 to improve oil production.
Upon closure, Jadestone paid a cash consideration of $10m to Quadrant Energy and Santos. It was funded from proceeds of the private placement completed on 8 November.
Mitra Energy 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 and 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.”
Following closure, Quadrant Energy will perform its duties as operator of the Stag Oilfield on behalf of Jadestone according to a transitional services agreement until either 31 October 2017, or when Australian regulatory approvals required for Jadestone to be operator of the Stag Oilfield have been secured.
These regulatory approvals are currently expected towards the end of Q1 of 2017.