Portfolio Focus and Optimization – Sinphuhorm Sale

Portfolio Focus and Optimization - Sinphuhorm Sale

Strategic Delivery Through Focus on Core Areas

16 April 2025 - Singapore: Jadestone Energy plc (AIM:JSE) (the "Company" and together with its subsidiaries, "Jadestone" or the "Group"), an independent upstream production and development company focused on the Asia-Pacific region, announces that it 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."

-ends-

For further information, please contact:

About Jadestone Energy

Jadestone Energy plc is an independent upstream company focused on the Asia-Pacific region. It has a balanced and increasingly diversified portfolio of production and development assets in Australia, Malaysia, Indonesia and Vietnam, all stable jurisdictions with a positive upstream investment climate.

The Company is pursuing a strategy to grow and diversify the Company's production base both organically, through developments such as at Akatara in Indonesia, Nam Du/U Minh in Vietnam and the Puteri Cluster offshore Malaysia, 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.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.