THE historic Stag oilfield has finally found a new owner with Canadian independent Mitra Energy Inc. revealing it has acquired the offshore WA field for around US$10 million from local owners Quadrant Energy and Santos.

The acquisition figure is significantly lower than the US$50 million proposed by Malaysia’s Sona Petroleum when it announced it was acquiring Stag in November 2015. However, the continuing decline in the oil price and reported shareholder concerns saw that deal fall through, opening the door for Mitra to expand its Asian portfolio.

Paul Blakeley, Mitra’s executive chairman, said the Stag acquisition was very important to the company as it puts Mitra on a path of transformation to becoming a leading upstream production operator in the Asia Pacific region.

“This acquisition is cash generative from day one and provides a solid base for future growth.  It creates the opportunity to demonstrate efficient and safe operating capability, consistent with what the new management team at Mitra have done in the past in Asia Pacific with Talisman Energy, and will leverage these skills to add value through further infill drilling activity, cost reduction and reservoir management,” Mr Blakeley said.

“This is exactly the type of asset we are looking to invest in with deep value multiples, and we are very excited to be taking this first step towards buildinga business which takes advantage of the current market in a low oil price environment, with an increasing set of opportunities where we can best leverage our experience.”

The proposed Acquisition will see Mitra acquire 100% operatorship and full ownership of the assets in production and development, with the potential to further expand the drilling and production activities at the Stag oilfield.

Mitra says it has identified various cost reduction measures to continue to lower operating costs for the field. Future activities planned for Stag Oilfield include one appraisal pilot and three infill producers in the West area in 2017 and up to three further wells in the East area in 2018.

The company said it will also consider appraisal activities in the undrilled low risk exploration area of Hart and Stag South.

Originally discovered by Apache and Santos back in 1983, the Apache-operated Stag field came into production back in1998,

The field is located in the Carnarvon Basin, approximately 60km offshore in a water depth of approximately 50 metres.

Mitra says Stag has a 1P reserve base of 10.1 million barrels (MMstb) and is currently producing at around 3,750 barrels of oil per day from 10 wells.