REG - Jadestone Energy PLC - Portfolio Focus and Optimization – Sinphuhorm Sale

Jadestone EnergyAnnouncement

16/04/2025 07:00

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RNS Number : 2546F  Jadestone Energy PLC  16 April 2025

Portfolio Focus and Optimization - Sinphuhorm Sale

 

Strategic Delivery Through Focus on Core Areas

 

16 April 2025 - Singapore: Jadestone Energy plc (AIM:JSE) (the "Company" and
together with its subsidiaries, "Jadestone" or the "Group"), an independent
upstream production and development company focused on the Asia-Pacific
region, announces that it has divested its 9.52% interest in the producing
Sinphuhorm gas field onshore Thailand to PTTEP HK Holding Limited, a
subsidiary of PTTEP, Thailand's national oil and gas company, for a cash
consideration of US$39.4 million, with a further US$3.5 million in cash
payable contingent on future licence extensions.

 

The US$39.4 million received consists of a US$35 million base consideration as
of the effective date of 1 January 2025, plus adjustments between the
effective date and closing date of 16 April 2025. A further US$3.5 million in
cash is payable in the event of an extension to either of the two petroleum
licences which contain the Sinphuhorm field, which currently expire in 2029
and 2031, respectively.

 

Since Jadestone acquired its Sinphuhorm field interest in February 2023, and
under PTTEP's excellent stewardship as operator, asset performance has been
above expectations. This has been driven by the contribution from recent
infill wells, a booster compression project successfully commissioned in May
2024, and recent strong gas demand in northeast Thailand. After an internal
strategic review process, Jadestone has concluded to focus its future growth
initiatives through its operated positions in Australia, Malaysia, Indonesia
and Vietnam, and as such, decided to accelerate value and cashflow for its
shareholders through the sale of its Sinphuhorm interest.

 

The transaction is structured as the sale of Jadestone's 100% owned subsidiary
Jadestone Energy (Thailand) Pte Ltd., which owns (directly and indirectly) a
27.2% interest in an intermediary company, APICO LLC ("APICO"). APICO's
primary asset is a 35% interest in the producing Sinphuhorm gas field. APICO
also currently owns a 100% interest in the L27/43 licence, which is expected
to be relinquished after two wells are plugged and abandoned. APICO generated
a profit before tax of US$7.2 million for the year ended 31 December 2023 1 ,
net to the 27.2% interest being sold. As of 31 December 2024, Jadestone's
independently evaluated 2P reserves included 3.8 mmboe net to the Group's
9.52% interest in Sinphuhorm.

 

As a result of the transaction, Jadestone's 2025 Group production guidance is
revised from 19,000-22,500 boe/d to 18,000-21,000 boe/d, reflecting the
removal of forecast Sinphuhorm production from the closing date until year-end
2025. 2025 Group operating cost and capital expenditure guidance of US$250-300
million and US$75-95 million respectively are unchanged, as they did not
incorporate Sinphuhorm costs 2 .

 

Adel Chaouch, Executive Chairman of Jadestone, commented:

 

"We remain resolutely focused on executing our strategy to create the leading
upstream independent in the Asia-Pacific region. A central pillar of this
strategy is portfolio optimization and scale, ensuring that we have critical
mass and material positions in each of the countries where we operate. The
divestment of Sinphuhorm accelerates the delivery of our strategy.

 

This transaction is a win-win for both Jadestone and PTTEP. We have delivered
an attractive return on an asset that we have owned for just over two years,
in large part due to PTTEP's first-rate stewardship of this asset during the
period, and I would like to thank PTTEP for their positive engagement and
collaboration through this process.

 

We will deploy the proceeds of this sale into strengthening our balance sheet
and delivering accretive growth in our core areas, where we have significant
operating capability."

 

-ends-

 

For further information, please contact:

 

 Jadestone Energy plc
 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)
 Georgia Edmonds
 Poppy Hawkins

 

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 and
Vietnam, all stable jurisdictions with a positive upstream investment climate.

 

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 Puteri Cluster 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) .

 

The information contained within this announcement is considered to be inside
information prior to its release, as defined in Article 7 of the Market Abuse
Regulation No. 596/2014 which is part of UK law by virtue of the European
Union (Withdrawal) Act 2018.

 1  Jadestone's share of APICO profit before tax from 23 February 2023
(completion of Jadestone's acquisition of a 27.2% interest in APICO) to 31
December 2023

 2  Group production guidance included Jadestone's share of Sinphuhorm
production. In accordance with IAS 28, the interest in Sinphuhorm is accounted
for as an associated undertaking, with Jadestone recognising its share of
Sinphuhorm profit after tax and dividends received. Accordingly, Jadestone's
share of operating costs and capital expenditure from Sinphuhorm were excluded
from the Group's guidance.

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