Jadestone secures $200mn RBL facility

Asia Pacific-focused energy company Jadestone Energy on May 19 announced the signing of a new $200mn reserves-based lending (RBL) facility with a group of four international banks. The facility includes an uncommitted accordion of $160mn, subject to incremental availability of bank debt.

The RBL facility, with a four-year tenor, will undergo bi-annual redeterminations to determine debt capacity based on various factors such as oil prices, operating performance, and future acquisitions.

The facility will be used to repay the existing $50mn interim facility and fund operations, including the Akatara gas project in Indonesia, as well as support general corporate purposes.

“This facility forms an important stepping stone as we focus on delivering our key growth objectives including infill drilling in Malaysia and executing the Akatara gas development project,” said Jadestone CEO Paul Blakeley. “Production from Akatara will bring significant incremental debt capacity when integrated into the RBL facility, and the ramp-up of Akatara’s cash flow is also projected to drive a deleveraging of our balance sheet.”

Jadestone has a 100% operated interest in the Lemang PSC, which includes the undeveloped Akatara gas field. The company reached the final investment decision on the project in June last year. Japan's JGC has been contracted to build a plant that will process gas from the Akatara gas field.

Jadestone in 2021 signed an agreement to sell gas from the Akatara gas field to local utility Pelayanan Listrik Nasional Batam, which has committed to take 20.5bn Btu/day of gas starting in the first quarter of 2024.