Global law firm White & Case has advised the Commonwealth Bank of Australia and Société Générale, Singapore Branch, as mandated lead arrangers, underwriters and bookrunners, on a US$120 million reserve-based term facility provided to Jadestone Energy (Eagle) Pty Ltd (a wholly owned subsidiary of Jadestone Energy Inc.) for the acquisition of the Montara offshore oil project (including FPSO).
"The Asia-Pacific region is one of the fastest developing parts of the world and as it develops, the need for energy grows commensurately. Financiers continue to show a strong appetite for lending to borrowers who are developing or procuring quality assets with exposure to the Asia-Pacific growth story," said White & Case partner Joel Rennie, who led the deal team. "This transaction involved using a reserves-based lending facility, which requires a certain technical expertise on behalf of Jadestone and the lenders. This type of lending, including the acquisition of an FPSO, is relatively rare in the Australian market."
The Montara oil project is located approximately 650 kms northwest of Broome, Western Australia, and can produce up to 10.3 thousand barrels of oil per day of OECD production with 2P reserves of 28.2 million barrels of oil (MMbbl), more than tripling Jadestone’s production to 13.9 mbbl/d and increasing 2P reserves to 45.3 MMbbl.
The White & Case team that advised on the transaction was led by partner Joel Rennie, who was assisted by associates Emanuel Blum and Lachlan Barth.
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