TIDMJSE
RNS Number : 3245X
Jadestone Energy Inc.
29 April 2019
Jadestone Energy Inc.
Jadestone Energy Announces Heads of Agreement for Vietnam Gas
Sales
April 29, 2019-Singapore: Jadestone Energy Inc. (AIM:JSE,
TSXV:JSE) ("Jadestone" or the "Company"), an independent oil and
gas production company focused on the Asia Pacific region, is
pleased to announce that two of its wholly-owned subsidiaries have
signed a Heads of Agreement ("HOA") with Petrovietnam, relating to
gas sales from the Nam Du and U Minh gas fields (Jadestone 70%1
working interest, and operator) in block 46/07 and block 51,
respectively, offshore Southwest Vietnam.
The HOA covers all discovered resources from the Nam Du and U
Minh fields, and establishes a mutually agreeable framework for gas
sales, priced at the wellhead, and delivered to a tie-in point at a
nearby existing pipeline. The agreed daily contract quantity
("DCQ") is established as 80 mmcf/d, targeting a minimum plateau
period of 55 months. In addition to the DCQ, the HOA specifies
certain take-or-pay provisions, in addition to a pricing formula in
principle, all of which will be finalised in the ultimate gas sales
and purchase agreement ("GSPA").
The parties intend to negotiate an initial wellhead price, in
accordance with the agreed pricing formula, following the
availability of updated cost data for the development, expected
post summer 2019. The spirit of the HOA captures a negotiated price
outcome that will be competitive, while providing Jadestone with an
appropriate full cycle investment return. The parties are targeting
GSPA signing and field development sanction before the end of
2019.
Paul Blakeley, President and CEO commented:
"Signing a Heads of Agreement with Petrovietnam marks a
significant milestone in our commercial negotiations, as we look to
develop the Nam Du and U Minh gas fields. With key terms now
broadly agreed, we can now press forward with the project
activities that should lead to a development decision being taken
later this year. This will realise a significant portion of the
long-term value of the Company's Southwest Vietnam Assets,
delivering growth towards our target of 30,000boepd by 2023, as
well as significant cash flow and value, with first gas anticipated
in late 2021."
The Nam Du and U Minh fields contain 2C resources of 171.3 bscf
of gas (119.9 bscf net to Jadestone, based on a 70% working
interest(1) ) and 1.6 mm bbls of liquids (1.1 mm bbls net to
Jadestone), evaluated by ERCE as of December 2017. As specified in
the outline development plan, approved in May 2018, the Company
intends to commercialise the fields as a stand-alone development,
utilising existing infrastructure which provides feedstock for a
1.5GW onshore power complex, and an adjacent 800,000 tonne/year
fertiliser plant.
(1) Jadestone's working interest will increase to 100%,
following registration of Petrovietnam's relinquishment of its 30%
working interest in block 46/07 and block 51
- Ends -
Enquiries
Jadestone Energy Inc. +65 6324 0359 (Singapore)
Paul Blakeley, President and CEO +1 403 975 6752 (Canada)
Dan Young, CFO ir@jadestone-energy.com
Robin Martin, Investor Relations Manager
Stifel Nicolaus Europe Limited (Nomad, +44 (0) 20 7710 7600 (UK)
Joint Broker)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield
BMO Capital Markets Limited (Joint Broker) +44 (0) 20 7236 1010 (UK)
Thomas Rider
Jeremy Low
Thomas Hughes
Camarco (Public Relations Advisor) + 44 (0) 203 757 4980 (UK)
Billy Clegg jadestone@camarco.co.uk
James Crothers
About Jadestone Energy Inc.
Jadestone Energy Inc. is an independent oil and gas company
focused on the Asia Pacific region. It has a balanced, low risk,
full cycle portfolio of development, production and exploration
assets in Australia, Vietnam and the Philippines.
The Company has a 100% operated working interest in Stag,
offshore Australia, and a 100% legal and beneficial interest in the
Montara assets, and a 99% legal, subject to regulatory approval,
and beneficial right, title, and interest in the associated
production licences AC/L7 and AC/L8 (the "Montara Titles"). The
remaining 1% legal interest in the Montara Titles is being held on
trust by the seller, in favour of the Company, until Australian
regulatory approvals relating to the transfer of operatorship of
the Montara assets are obtained. Both the Stag and Montara assets
include oil producing fields, with further development and
exploration potential. The Company has a 100% operated working
interest (subject to registration of PVEP's withdrawal) in two gas
development blocks in Southwest Vietnam and is partnered with Total
in the Philippines where it holds a 25% working interest in the
SC56 exploration block.
Led by an experienced management team with a track record of
delivery, who were core to the successful growth of Talisman's
business in Asia, the Company is pursuing an acquisition strategy
focused on growth and creating value through identifying,
acquiring, developing and operating assets throughout the
Asia-Pacific region.
Jadestone Energy Inc. is currently listed on the TSXV and AIM.
The Company is headquartered in Singapore. For further information
on Jadestone please visit www.jadestone-energy.com.
Cautionary statements
Certain statements in this press release are forward-looking
statements and information (collectively "forward-looking
statements"), within the meaning of the applicable Canadian
securities legislation, as well as other applicable international
securities laws. The forward-looking statements contained in this
press release are forward-looking and not historical facts.
Some of the forward-looking statements may be identified by
statements that express, or involve discussions as to expectations,
beliefs, plans, objectives, assumptions or future events or
performance (often, but not always, through the use of phrases such
as "will likely result", "are expected to", "will continue", "is
anticipated", "is targeting", "estimated", "intend", "plan",
"guidance", "objective", "projection", "aim", "goals", "target",
"schedules", and "outlook"). In particular, forward-looking
statements in this press release include, but are not limited to
statements regarding final terms of the GSPA, including price,
targeted timing for GSPA signing and Field Development Sanction,
and anticipated first production date.
Because actual results or outcomes could differ materially from
those expressed in any forward-looking statements, investors should
not place undue reliance on any such forward-looking statements. By
their nature, forward-looking statements involve numerous
assumptions, inherent risks and uncertainties, both general and
specific, which contribute to the possibility that the predicted
outcomes will not occur. Some of these risks, uncertainties and
other factors are similar to those faced by other oil and gas
companies and some are unique to Jadestone. The forward-looking
information contained in this news release speaks only as of the
date hereof. The Company does not assume any obligation to publicly
update the information, except as may be required pursuant to
applicable laws.
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of that Regulation.
The technical information contained in this announcement has
been prepared in accordance with the March 2007 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.
Henning Hoeyland of Jadestone Energy Inc., a Subsurface Manager
with a Masters degree in Petroleum Engineering who has been
involved in the energy industry for more than 17 years, has read
and approved the exploration and appraisal disclosure in this
regulatory announcement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Glossary
2C resources unrisked best estimate scenario of contingent resources
2P reserves sum of proved and probable reserves, denotes the
best estimate scenario of reserves
bscf billion standard cubic feet
GW gigawatt
mmbbls millions of barrels of oil
mmcf/d million cubic feet per day
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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