REG - Jadestone Energy PLC - Award of SFA Cluster PSC Offshore Malaysia

Jadestone EnergyAnnouncement

26/07/2024 07:00

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RNS Number : 9926X  Jadestone Energy PLC  26 July 2024

Award of SFA Cluster PSC Offshore Peninsular Malaysia

 

26 July 2024 - Singapore: Jadestone Energy plc ("Jadestone", or the
"Company"), an independent upstream company focused on the Asia-Pacific
region, is pleased to announce that through the Malaysia Bid Round Plus
("MBR+"), it has been awarded a 100% participating interest in a Small Field
Asset Production Sharing Contract (the "SFA Cluster PSC") offshore Peninsular
Malaysia by Petroliam Nasional Berhad ("PETRONAS"), through Malaysia Petroleum
Management.

 

The SFA Cluster PSC is located in shallow waters offshore Peninsular Malaysia.
It is surrounded by the PM428 PSC, in which a 60% operated interest was
awarded to Jadestone earlier in 2024 through the MBR 2023. The SFA Cluster PSC
award was effective from 1 July 2024. Jadestone has secured a bank guarantee
amounting to US$0.5 million in favour of PETRONAS to undertake the minimum
work commitment in the initial phase of the PSC.

 

The SFA Cluster PSC includes the Penara, Puteri, Padang and North Lukut
fields, assets in which Jadestone previously held a 50% non-operated interest
(through the PM318 PSC and the Abu, Abu Kecil, Bubu, North Lukut and Penara
PSC) following the Company's entry into Malaysia in August 2021. The SFA
Cluster PSC fields were producing at a gross rate of 5,000 boe/d in early 2022
prior to production shut-in.

 

Jadestone currently estimates that the SFA Cluster PSC contains c.15 mmbbls of
gross 2C contingent resources. Leveraging the experience gained through the
very successful 2023 infill drilling campaign on the PM323 licence, Jadestone
believes there is the potential for significant upside from future infill
drilling across the existing SFA Cluster fields as well as prospects and leads
on the surrounding PM428 PSC. The Company intends to continue its technical
assessment of the SFA Cluster prior to submission of a field development and
abandonment plan to PETRONAS.

 

The SFA Cluster PSC is governed by the Small Field Asset ("SFA") terms, which
are specifically designed to incentivise investment into smaller accumulations
of hydrocarbons in Malaysia. Further information on the SFA terms can be found
here (https://www.petronas.com/mpm/investment-opportunities/fiscal-terms/SFA)
. Jadestone has uploaded a short presentation to its website at
www.jadestone-energy.com (http://www.jadestone-energy.com) summarising the SFA
Cluster and PM428 opportunities.

 

Paul Blakeley, President and CEO commented:

 

"The SFA Cluster PSC award builds on the success of the 2023 PM323 infill
drilling programme, enhancing the scale and value of our Malaysian platform. I
would like to thank PETRONAS for this award and their continued confidence in
Jadestone, and I look forward to developing our relationship with them further
in order to realise the potential of the SFA Cluster and deliver significant
benefits for all of our Malaysian stakeholders."

 

-ends-

 

For further information, please contact:

 

 Jadestone Energy plc
 Paul Blakeley, President and CEO                      +65 6324 0359 (Singapore)
 Bert-Jaap Dijkstra, CFO

 Phil Corbett, Head of Investor Relations              +44 (0) 7713 687467 (UK)
                                                       ir@jadestone-energy.com (mailto:ir@jadestone-energy.com)

 Stifel Nicolaus Europe Limited (Nomad, Joint Broker)  +44 (0) 20 7710 7600 (UK)
 Callum Stewart
 Jason Grossman
 Ashton Clanfield

 Peel Hunt LLP (Joint Broker)                          +44 (0) 20 7418 8900 (UK)
 Richard Crichton
 David McKeown

 Georgia Langoulant

 Camarco (Public Relations Advisor)                    +44 (0) 203 757 4980 (UK)
 Billy Clegg                                           jse@camarco.co.uk (mailto:jse@camarco.co.uk)
 Andrew Turner

 Elfie Kent

 

About Jadestone Energy

 

Jadestone Energy plc is an independent upstream company focused on the
Asia-Pacific region.  It has a balanced and increasingly diversified
portfolio of production and development assets in Australia, Malaysia,
Indonesia, Thailand and Vietnam, all stable jurisdictions with a positive
upstream investment climate.

 

Led by an experienced management team with a track record of delivery, who
were core to the successful growth of Talisman Energy's business in
Asia-Pacific, the Company is pursuing a strategy to grow and diversify the
Company's production base both organically, through developments such as at
Akatara in Indonesia, Nam Du/U Minh in Vietnam and the SFA Cluster PSC
offshore Malaysia, as well as through acquisitions that fit within Jadestone's
financial framework and play to the Company's strengths in managing maturing
oil assets. Jadestone delivers value in its acquisition strategy by enhancing
returns through operating efficiencies, cost reductions and increased
production through further investment.

 

Jadestone is a responsible operator and well positioned for the energy
transition through its increasing gas production, by maximising recovery from
existing brownfield developments and through its Net Zero pledge on Scope 1
& 2 GHG emissions from operated assets by 2040. This strategy is aligned
with the IEA Net Zero by 2050 scenario, which stresses the necessity of
continued investment in existing upstream assets to avoid an energy crisis and
meet demand for oil and gas through the energy transition.

 

Jadestone Energy plc (LEI: 21380076GWJ8XDYKVQ37) is listed on the AIM market
of the London Stock Exchange (AIM: JSE).  The Company is headquartered in
Singapore.  For further information on the Company please visit
www.jadestone-energy.com (http://www.jadestone-energy.com) .

 

Cautionary Statements

This announcement may contain certain forward-looking statements with respect
to the Company's expectations and plans, strategy, management's objectives,
future performance, production, reserves, costs, revenues and other trend
information. These statements are made by the Company in good faith based on
the information available at the time of this announcement, but such
statements should be treated with caution due to inherent risks and
uncertainties. These statements and forecasts involve risk and uncertainty
because they relate to events and depend upon circumstances that may occur in
the future. There are a number of factors which could cause actual results or
developments to differ materially from those expressed or implied by these
forward-looking statements and forecasts. The statements have been made with
reference to forecast price changes, economic conditions and the current
regulatory environment. Nothing in this announcement should be construed as a
profit forecast. Past share performance cannot be relied upon as a guide to
future performance. The Company does not assume any obligation to publicly
update the information, except as may be required pursuant to applicable laws.

 

The technical information contained in this announcement has been prepared in
accordance with the June 2018 guidelines endorsed by the Society of Petroleum
Engineers, World Petroleum Congress, American Association of Petroleum
Geologists and Society of Petroleum Evaluation Engineers Petroleum Resource
Management System.

 

A. Shahbaz Sikandar of Jadestone Energy plc, Group Subsurface Manager with a
Masters degree in Petroleum Engineering, and who is a member of the Society of
Petroleum Engineers and has worked in the energy industry for more than 25
years, has read and approved the technical disclosure in this regulatory
announcement.

 

This release does not contain inside information.

 

Glossary

 

 2C contingent resources  best estimate contingent resource, being quantities of hydrocarbons which are
                          estimated, on a given date, to be potentially recoverable from known
                          accumulations but which are not currently considered to be commercially
                          recoverable
 boe/d                    barrels of oil equivalent per day
 mmbbls                   million barrels
 PSC                      production sharing contract

 

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