Mitra finalizes Stag oil field acquisition
Mitra Energy has completed the acquisition of the Stag oil field offshore Dampier, Australia, from Quadrant Energy and Santos.
Jadestone Energy Australia, Mitra Energy’s subsidiary, has completed the previously announced acquisition on Friday, November 11, and now owns a 100 percent stake in the oil field. The company paid $10 million for the acquisition.
The field is located in block WA-15-L, 60 kilometers offshore Western Australia in the Carnarvon Basin at a water depth of approximately 47 meters. It has been in production since 1998. The production rate of Stag since the acquisition effective date of July 1, 2016, has averaged 3,468 barrels per day but is expected to increase on the completion of two workovers planned for this month as well as further increases with the infill wells which are planned for 2017.
Executive Chairman, Paul Blakeley, said: “This is a major milestone for 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 some 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 oil field from Quadrant Energy to Mitra as a key next step in building our operating credentials.”
Mitra added that Quadrant Energy would continue to perform its duties as the operator of Stag on behalf of Jadestone under a transitional services agreement until October 31, 2017, or until approvals required for Jadestone to takeover operatorship have been obtained. The company expects these approvals to be granted towards the end of the first quarter of 2017.
Offshore Energy Today Staff