REG - Jadestone Energy PLC - Gas Sales Agreement Signed for NDUM in Vietnam

Jadestone EnergyAnnouncement

26/01/2024 07:30

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RNS Number : 0428B  Jadestone Energy PLC  26 January 2024

 

 

Gas Sales Heads of Agreement Signed for Nam Du & U Minh Fields Offshore
Vietnam

 

De-risking a significant and valuable strategic gas resource

 

26 January 2024 - Singapore: Jadestone Energy plc ("Jadestone", the "Group" or
the "Company"), an independent upstream company focused on the Asia-Pacific
region, is pleased to announce that it has signed a Heads of Agreement ("HoA")
with PetroVietnam Gas Joint Stock Corporation ("PV Gas") for the Gas Sales and
Purchase Agreement ("GSPA") relating to the Nam Du and U Minh ("NDUM") gas
fields development offshore Vietnam.

 

Overview

 

·    A signed HoA is the first step in the commercialisation of the NDUM
fields, located in the Block 46/07 and Block 51 Production Sharing Contracts
in shallow water offshore southwest Vietnam.

·    The HoA stipulates a daily contract quantity of 80 mmscfd under a
take-or-pay arrangement over a targeted minimum plateau period of 55 months,
with an earliest possible first gas date in late 2026.

·    Initial wellhead gas price in the HoA is comparable to the price of
recent Vietnam pipeline gas imports, and subject to annual escalation.

·    The NDUM fields, in which Jadestone currently has 100% working
interests, contain gross aggregate 2C resources of 171.3 bscf of gas and 1.6
mmbbls of liquids, as evaluated by ERCE as of December 2017.

·    Jadestone estimates significant upside potential surrounding the
existing discoveries, with any future resource additions likely to represent
straightforward tie-backs to the NDUM core facilities.

 

This HoA forms the basis for detailed negotiations over a fully-termed GSPA.
It is also the precursor which allows the submission of an updated Field
Development Plan ("FDP") for the Nam Du and U Minh fields, the approval of
which is key for progressing to a Final Investment Decision of this material
project for Jadestone. The Company is preparing to submit an updated FDP in
the near future, which will specify the development concept for the ND/UM
fields, associated capital and operating cost estimates, and a schedule to
first gas.

 

The Company has uploaded a short presentation to its website at
www.jadestone-energy.com (http://www.jadestone-energy.com) summarising its
Vietnam assets and the proposed NDUM development concept.

 

Paul Blakeley, President and CEO commented:

 

"Securing a signed Heads of Agreement is a crucial step which helps to restart
the commercialisation of our Vietnam discoveries, and regain momentum for the
development of this very important asset within our portfolio.  While there
remains significant work ahead to deliver a GSPA and a detailed project plan
and development schedule to first gas, this is a clear signal of intent from
the Government to see this resource developed.  The Nam Du and U Minh gas
fields would deliver significant medium-term production growth for Jadestone,
further diversifying our asset base and increasing our gas volumes while
decreasing our GHG emissions intensity - all key elements of our strategic aim
to be a leading Asia-Pacific upstream company.

The likely timing of FID at Nam Du/U Minh would result in capital expenditure
occurring no earlier than mid-2025, thereby supporting an organic funding
solution through Jadestone's cash flow generation, available debt and the
added potential of bringing in partners during the development phase.

 

Nam Du/U Minh production will also help reduce Vietnam's reliance on expensive
gas imports, which have a higher GHG emissions intensity than domestic gas. It
would also contribute to the country's energy transition and stated goal of
Net Zero greenhouse gas emissions by 2050, as well as creating local jobs and
economic benefits. I would like to thank PV Gas, PetroVietnam and our team in
Vietnam for their efforts to bring us to this point, and we will now focus on
preparation of the FDP."

 

-ends-

For further information, please contact:

 

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

 Phil Corbett, Investor Relations Manager              +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 oil and gas 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 at
Akatara in Indonesia and Nam Du/U Minh in Vietnam, 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

 

 bscf    billion standard cubic feet per day
 GHG     Greenhouse gas
 mmbbls  million barrels
 mmscfd  million standard cubic feet per day

 

 

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