Jadestone wraps up acquisition of Montara oil project

Jadestone Energy has wrapped up its acquisition of the Montara oil project off the coast of Australia with a $195m payment to its current owner and operator PTT Exploration and Production.

In addition to acquiring Montara's assets, a total of $92m in cash and inventory was transferred to Jadestone as a result of the accumulated economic benefits of the asset for the period from the previously agreed-to deals effective as of the date of 1 January.

Jadestone also revealed it had fully drawn its $120m senior secured RBL debt facility with Commonwealth Bank of Australia and Société Générale in order to fund the acquisition.

PTT will continue to govern the operation and management of Montara and its associated assets until the transfer of operatorship is completed.

Jadestone's president and chief executive Paul Blakeley, said: "Today's news is an excellent example of how we can deploy our unique skill-set to deliver material value for our shareholders through growth in the opportunity-rich Asia Pacific region.

"The acquisition is highly accretive from day one, with metrics further enhanced by the cash coming with the asset."

As of 1100 BST, Jadestone shares were 0.25% softer at 39.80p.