Jadestone, OMV Take More Time to Wrap Maari Field Transaction

Oil and gas company Jadestone Energy and OMV have agreed to extend the long-stop date for the completion of Jadestone's acquisition of OMV's stake in the Maari project, in the shallow waters offshore New Zealand.

Jadestone in November 2019 agreed to buy OMV's 69% operated interest in the Maari Project for $50 million.

The Maari project includes the producing Maari and Manaia oil fields, located within PMP 38160, in the offshore Taranaki Basin, in a water depth of around100 meters.

 As of November 2019, oil production was approximately 4,000 – 4,500 bbls/d, produced via a self-elevated jack-up wellhead platform, and the Raroa FPSO. The project has been producing since 2009, achieving peak production of 16,400 bbls/d in 2010.

Extension of long-stop date

Jadestone last year said it expected to complete the transaction in the second half of 2020. However, the two companies have now given themselves more time, citing the potential effect of New Zealand general election on the timing of the regulatory approval for the transaction.

In a statement on Friday, Jadestone said that OMV and the company had made substantial progress toward satisfying the acquisition's closing conditions, including obtaining the majority of third party consents. 

However, as a precautionary measure in acknowledgment of the remaining closing condition, being final New Zealand Government regulatory approval, and amidst the New Zealand 2020 general election, Jadestone and OMV have agreed to revise the long stop date from November 15, 2020, to January 31, 2021. 

"Both parties remain fully committed to the transaction and the company continues to anticipate closing the acquisition by the end of 2020." Jadestone said.

Jadestone said it planned to establish New Zealand as an extension to its Australia core area, seeing the Maari Project "as a natural fit with its strategy to acquire and reinvest into mid-life producing assets."

The Maari fields are scheduled to produce until 2031, however, the Jadestone management team has said that it believes there is substantial potential for reserves upside not yet captured in the 2P reserves.