Jadestone Energy, an independent upstream company focused on the Asia-Pacific region, has announced that, through the Malaysia Bid Round Plus ('MBR+'), it has been awarded a 100% participating interest in a Small Field Asset Production Sharing Contract (the 'SFA Cluster PSC') offshore Peninsular Malaysia by Petroliam Nasional Berhad ('PETRONAS'), through Malaysia Petroleum Management.
The SFA Cluster PSC is located in shallow waters offshore Peninsular Malaysia. It is surrounded by the PM428 PSC, in which a 60% operated interest was awarded to Jadestone earlier in 2024 through the MBR 2023. The SFA Cluster PSC award was effective from 1 July 2024. Jadestone has secured a bank guarantee amounting to US$0.5 million in favour of PETRONAS to undertake the minimum work commitment in the initial phase of the PSC.
The SFA Cluster PSC includes the Penara, Puteri, Padang and North Lukut fields, assets in which Jadestone previously held a 50% non-operated interest (through the PM318 PSC and the Abu, Abu Kecil, Bubu, North Lukut and Penara PSC) following the Company’s entry into Malaysia in August 2021. The SFA Cluster PSC fields were producing at a gross rate of 5,000 boe/d in early 2022 prior to production shut-in.
Jadestone currently estimates that the SFA Cluster PSC contains c.15 mmbbls of gross 2C contingent resources. Leveraging the experience gained through the very successful 2023 infill drilling campaign on the PM323 licence, Jadestone believes there is the potential for significant upside from future infill drilling across the existing SFA Cluster fields as well as prospects and leads on the surrounding PM428 PSC. The Company intends to continue its technical assessment of the SFA Cluster prior to submission of a field development and abandonment plan to PETRONAS.
The SFA Cluster PSC is governed by the Small Field Asset ('SFA') terms, which are specifically designed to incentivise investment into smaller accumulations of hydrocarbons in Malaysia. Further information on the SFA terms can be found here. Jadestone has uploaded a short presentation to its website at www.jadestone-energy.com summarising the SFA Cluster and PM428 opportunities.
Paul Blakeley, President and CEO commented:
'The SFA Cluster PSC award builds on the success of the 2023 PM323 infill drilling programme, enhancing the scale and value of our Malaysian platform. I would like to thank PETRONAS for this award and their continued confidence in Jadestone, and I look forward to developing our relationship with them further in order to realise the potential of the SFA Cluster and deliver significant benefits for all of our Malaysian stakeholders.'
Click here for: Presentation: SFA Cluster and PM428 overview 26 July 2024
Source: Jadestone Energy
