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
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
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Paul Blakeley, President and
CEO
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+65 6324 0359 (Singapore)
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Bert-Jaap Dijkstra, CFO
Phil Corbett, Investor Relations
Manager
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+44 (0) 7713 687467 (UK)
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ir@jadestone-energy.com
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Stifel Nicolaus Europe Limited (Nomad, Joint
Broker)
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+44 (0) 20 7710 7600 (UK)
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Callum Stewart
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Jason Grossman
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Ashton Clanfield
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Peel
Hunt LLP (Joint Broker)
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+44 (0) 20 7418 8900 (UK)
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Richard Crichton
David McKeown
Georgia Langoulant
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Camarco (Public Relations Advisor)
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+44 (0) 203 757 4980 (UK)
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Billy Clegg
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jse@camarco.co.uk
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Andrew Turner
Elfie Kent
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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.
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
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billion standard cubic feet per
day
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GHG
|
Greenhouse gas
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mmbbls
|
million barrels
|
mmscfd
|
million standard cubic feet per
day
|