Strategic Delivery Through Focus on Core Areas
AIM-listed Jadestone Energy, an independent upstream production and development company focused on the Asia-Pacific region, 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.'
Source: Jadestone Energy
