Jadestone Energy has confirmed that it is working on a deal for assets owned by Woodside Energy in Australia.
Should the purchase move ahead, Jadestone said, it would qualify as a reverse takeover. This would trigger a suspension of Jadestone shares on AIM.
The minnow named the assets in question as the Macedon and Greater Pyrenees projects, offshore Western Australia. Morgan Stanley is running the bid process for Woodside.
The Australian reported two days ago that Carlyle, Hibiscus Energy and Jadestone were the “final contenders” in the sale of Macedon.
Woodside’s net production in the producing Macedon gas field, and wider Pyrenees, averaged 28,000 barrels of oil equivalent per day in the second half of 2023. Media reports have put the assets price at around $500 million.
Jadestone reported it produced 13,813 boepd in 2023, up 20% on the year.
The company warned there were no assurances that it would reach a deal. It will provide further details as appropriate, it said.
AIM-listed Jadestone has focused on M&A as a pathway to growth. Speaking to Energy Voice in April 2023, CEO Paul Blakeley said Jadestone saw a number of opportunities in Asia-Pacific and particularly Australia.
“Offshore Australia there’s nobody competing with us,” he said last year. “In the North Sea, there would be 20 private equity-backed teams chasing all sorts of assets – and paying top dollar.”
Woodside has a 71.4% stake in the WA-42-L licence, which holds Macedon. The field produces via subsea wells, with gas exported via pipeline to a treatment plant near Onslow. A 67-km pipeline then hooks into local links, with sales into the WA gas market. Woodside acquired the assets through its acquisition of BHP Petroleum.