Stag oil field sold for $US10m

Singapore-based Mitra Energy has completed the $US10 million ($A13.3 million) purchase of the Stag oil field off the Pilbara coast, but is still awaiting regulatory approval to take over as operator.  

Mitra, which is listed on the TSX Venture exchange in Canada, bought the field through subsidiary company Jadestone Energy (Australia).

Completion of the deal comes nearly four months after Mitra signed a sale and purchase agreement with Quadrant Energy (33.3 per cent owner and operator) and Santos (66.6 per cent), which are looking to focus on their larger assets.

The former owners originally struck a $US50 million sale agreement one year ago with Malaysia’s Sona Petroleum.

The pricing of that deal was subsequently cut by half to reflect weak oil prices, before the revised deal was rejected by Sona shareholders.

The Stag field is located 60 kilometres off the Western Australian coast in the Carnarvon Basin in a water depth of approximately 47 metres. 

Mitra said the production rate of the field since July 1 had averaged 3,468 barrels per day, but was expected to increase on the completion of two workovers planned for this month as well as further increases with infill wells that were planned for 2017.

Executive chairman Paul Blakeley said the purchase was a major milestone for Mitra.

“Stag will bring production and cash flows to the company for the first time in its history, as well as a number of exciting re-investment options to create further value for shareholders,” he said.

“This is therefore a very exciting moment for Mitra and a pivotal point in our transition.”

Mr Blakely said Mitra was making good progress with Australian regulators to transfer operatorship of the Stag oilfield from Quadrant Energy.

These regulatory approvals are currently expected towards the end of Q1, 2017.