Indonesia: Jadestone Energy Acquires Ogan Komering PSC

Indonesia: Jadestone Energy Acquires Ogan Komering PSC

Jadestone Energy Inc. (TSX VENTURE:JSE) ("JSE" or the "Company") is pleased
to announce that Jadestone Energy International Holdings Inc. ("Jadestone"),
a wholly-owned subsidiary of JSE, has closed the acquisition of a fifty
percent (50%) interest in the Ogan Komering Production Sharing Contract,
Sumatra, Indonesia ("PSC").

Jadestone, as buyer, and Jadestone Energy Limited ("JEL"), as guarantor,
have signed a definitive Sale & Purchase Agreement ("SPA") with Repsol Oil &
Gas Canada Inc. ("Repsol"), as seller, for the acquisition of all issued and
outstanding shares in Talisman (Ogan Komering) Ltd. ("TOKL"). TOKL holds a
fifty percent (50%) interest in the PSC. The SPA was signed and the
acquisition closed concurrently.

The PSC's corresponding block is located in South Sumatra, Indonesia. The
remaining fifty percent (50%) in the PSC is held by PT Pertamina Hulu Energi
Ogan Komering ("Pertamina Ogan Komering"), an affiliate of PT Pertamina
Persero, Indonesia's national oil company. TOKL, together with Pertamina
Ogan Komering, operates the PSC through a joint operated body. The
production rate of the Ogan Komering block since the acquisition effective
date of July 1, 2016 has averaged 3,000 barrels of oil equivalent ("BOE")
per day (gross); approximately seventy percent oil and thirty percent gas.

Jadestone has closed the acquisition for a total consideration of US$5.8
million, subject to working capital and other customary adjustments. The
payment was funded from cash on hand.

Executive Chairman, Paul Blakeley said, "This is a key first step for
Jadestone Energy to open up opportunities in Indonesia and to establish
ourselves as a partner of choice with Pertamina through being joint operator
in Ogan Komering. We are also delighted to have worked closely with Repsol
and successfully concluded our first transaction with them, as we continue
to transform our business to become a significant oil and gas production and
development company across Asia Pacific.

"Ogan Komering also provides the platform to renew relationships with the
Indonesian oil and gas regulators MIGAS and SKKMigas and we welcome the
experienced team of employees, whom I have known for many years with
Talisman Energy, who will transfer to Jadestone Energy (Ogan Komering) Ltd.

"Ogan Komering is well understood by us, and will bring important cash flows
to the Company today, but more significantly has the potential for low-cost,
early development of recent gas discoveries, to provide growth going
forward. Working cooperatively with Pertamina, this will help to meet
growing local energy demand into 2018 and beyond.

The Company is now equipped with a small but very experienced team in
Indonesia, with a number of exciting investment options to target on the
license, plus a wider set of M&A options in this new core area in Indonesia,
to create further value for our shareholders."

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Link to Original Article:
http://www.marketwired.com/press-release/jadestone-energy-acquires-ogan-kome
ring-psc-tsx-venture-jse-2202359.htm

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com