Jadestone Energy plc announced the completion of the acquisition of a non-operated 16.67% working interest in the Cossack, Wanaea, Lambert, and Hermes oil fields development, offshore Western Australia, from Japan Australia LNG (MIMI) Pty Ltd. As a result, the Company's non-operated working interest in the CWLH fields has increased to 33.33% (from 16.67%). The headline acquisition cost to Jadestone was USD 9 million, as originally announced on 14 November 2023. Agreed adjustments, reflecting the accumulated economic benefits of the CWLH assets for the period from the effective date of 1 July 2022 to completion, resulted in a net receipt to Jadestone from the Seller of USD 6.3 million.

The USD 6.3 million net receipt from the Seller and USD 35.7 million from Jadestone have been paid into the CWLH Abandonment Trust Fund, in aggregate satisfying the initial USD 42 million abandonment funding and in line with the original acquisition announcement. The second USD 23 million instalment into the CWLH Abandonment Trust Fund is payable on NOPTA approval of the accession documents, which is expected in April 2024. The final instalment into the CWLH Abandonment Trust Fund is payable by 31 December 2024.

The acquired interest includes the Seller's entire 16.67% working interest in the CWLH oil fields, subsea infrastructure, Okha FPSO, and full abandonment liabilities. The CWLH fields continue to perform ahead of the Company's expectations, averaging c.13,700 bbls/d year to date in 2024, equivalent to c.2,300 bbls/d for the 16.67% interest being acquired or c.4,600 bbls/d to the Company's total 33.33% interest following completion. Liftings of crude oil from the CWLH fields are implemented on an equity basis.

Jadestone's next cargo, attributable to the 16.67% interest just acquired, is estimated at c.650,000 barrels and has been sold at a small premium to Brent with the lifting scheduled for early March 2024. Receipt of proceeds for this lifting are expected in early April 2024. Two further liftings of similar size are expected within the next 12 months - one attributable to the original 16.67% interest and the other attributable to the 16.67% just acquired.