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.
According to Paul Blakeley, President and CEO of Jadestone Energy, 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.
