Friday 29 July 2022

Jadestone Energy plc ("Jadestone", or the "Company") an independent oil and gas production company focused on the Asia-Pacific region, is pleased to announce that it has executed a sale and purchase agreement (the "Agreement") with BP Developments Australia Pty Ltd ("BP", or the "Seller"), to acquire the Seller's non-operated 16.67% working interest in the Cossack, Wanaea, Lambert, and Hermes oil fields development (the "North West Shelf Oil Project"), offshore Western Australia, for a total initial headline cash consideration of US$20 million, to be funded from the Company's cash resources, and certain subsequent contingent and decommissioning payments (the "Acquisition").

Paul Blakeley, President and CEO commented:

"This acquisition is another example of our strategy in action, acquiring low-cost barrels at less than US$3/bbl, while establishing an entry position into a very high-quality long-life asset with very low decline rates. We believe that over time we can exercise increasing influence and deploy our skills in mid-life oil field management. In particular we see material upside potential through infill drilling into reservoirs with very significant oil-in-place and, together with optimisation of operating costs, the life of the producing fields can be extended for several years. In the near to mid-term, further interests in the asset may become available, over which we would have pre-emption rights. We will initially participate in the joint venture without any incremental headcount or cost and will fund the acquisition through existing cash resources.

"The acquisition also fits well with our sustainability principles and climate strategy with flaring minimised due to available gas export infrastructure, and we look forward to working with the joint venture partners to further minimise the greenhouse gas footprint of the acquired assets. We also believe recovery from existing upstream assets should be maximised to provide the resources required to support near-term transition towards a low-carbon future. In addition, we will fund our share of the forecast decommissioning costs for the assets through early payments, demonstrating our commitment to providing clarity on this important issue for all our stakeholders."